Borrowing from SEP to finance home

[MFR1]

The closing for my new condo is before the closing on my current condo. I was told I could borrow from my retirement and replace it after sale my current condo. I was told there would be no penalties or taxes if replaced in 60 days. Is this true?

[LudwigVan_fan]

Yes, loans may be made from retirement plans.  This is from IRS:

Loans

A retirement plan loan must be paid back to the borrower’s retirement account under the plan. The money is not taxed if loan meets the rules and the repayment schedule is followed. A plan sponsor is not required to include loan provisions in its plan. Profit-sharing, money purchase, 401(k), 403(b) and 457(b) plans may offer loans. Plans based on IRAs (SEP, SIMPLE IRA) do not offer loans. To determine if a plan offers loans, check with the plan sponsor or the Summary Plan Description.

https://www.irs.gov/retirement-plans/hardships-early-withdrawals-and-loans

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-loans