IRA accounts as loan collateral

Posted By: Trees

IRA accounts as loan collateral - 10/15/15 01:02 PM

We know that there are implications for someone giving their IRA accounts as collateral, from a tax perspective and this may explain why banks won't take them, however, we were wondering if there are any regulations that actually prohibit taking them?
Thank you.
Posted By: rlcarey

Re: IRA accounts as loan collateral - 10/15/15 01:09 PM

Yes. It disqualifies the IRA.
Posted By: Elwood P. Dowd

Re: IRA accounts as loan collateral - 10/15/15 01:13 PM

"Prohibited transaction."
Posted By: el guapo

Re: IRA accounts as loan collateral - 10/15/15 05:55 PM

https://www.law.cornell.edu/uscode/text/26/408#e_4