From Kirchman’s BOB.
Q. May the owner pledge the IRA as collateral for a loan?
A. Not while keeping the IRA’s tax advantages. Pledging an IRA will be treated by the IRS as a distribution of the funds pledged. Those funds will be deemed to be ordinary income to the owner of the IRA in the year of the pledge, and various penalities may apply depending on the age of the owner and other factors. Similarly, neither the IRA owner nor any beneficiary may borrow directly from the IRA.
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The opinions expressed are mine and they are not to be taken as legal advice.