Answer by Ken Golliher: No. Look at the agreement between the customer and the fiduciary. It will not empower the fiduciary (your bank?) to borrow money or pledge the account as collateral.
Answer by Randy Carey: But, if the question instead is meant to ask, "Can the IRA itself borrow money to purchase real estate?" Technically, it is possible, but it is very tricky. As I understand it, it may subject the IRA to unrelated business income tax and one screw-up could jeopardize the IRA classification and trigger all applicable taxes on all taxable amounts currently in the account. It would not be for the faint at heart.
First published on BankersOnline.com 12/5/11