BillM223
Expert Alumni

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I am thinking that you did not have an IRA, because you said that you borrowed money against it.

 

The IRS says

"1. Can a loan be taken from an IRA?

Loans are not permitted from IRAs or from IRA-based plans such as SEPs, SARSEPs and SIMPLE IRA plans. Loans are only possible from qualified plans that satisfy the requirements of 401(a), from annuity plans that satisfy the requirements of 403(a) or 403(b), and from governmental plans. (IRC Section 72(p)(4); Reg. Section 1.72(p)-1, Q&A-2)"

 

So was this really a loan from your retirement plan like a 401(k)?

 

And next to box 7 on your 1099-R, where it says, "IRA/SEP/SIMPLE", is this box checked or not? If it is not checked, then you did not have an IRA.

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