Can I Take Money Out of One IRA, 401(k), 403(b), or Roth IRA and Roll It Into Another Account? – Dave

“Dear Paul,


I am unemployed and need money…fast!!.

I have several different retirement accounts:

With “Investor-A”, I have both, a Traditional IRA & a Roth IRA

With “Investor-B” I have both, 401k & 403b accounts (100% vested)… and I also have a SEP-IRA

Interesting scheme… do you think this will work..??

I know you cannot borrow from the IRA accounts..

… And unfortunately the 401 & 403 have much less in them. (it would hardly be worth borrowing from either, as I may as well just early-withdraw vs paying the broker’s loan-fees)

Could I draw out the money from Investor A and within 60-days, roll-over all of the money from Investor B…
thereby taking an early-withdrawl” ..without facing the early withdraw taxes or penalties from either account…??

To re-phrase… can you roll money into an IRA, to repay a 60-day rollover from that IRA…???

(Whew!!I… all that makes my head spin!!) 🙂 hahaha!!

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Thanks for your help!!


Hi Dave,

Quite simply put, you can withdraw money from a Traditional IRA without withholding or penalty, as long as it is rolled over (or in this case back into) within 60 days. The rub is; you can only do this once in a 12-month period, per IRA. That said; if you roll the IRA money into a new IRA, the same rule applies, as the IRS “follows the money” – in other words, the same money, regardless of whether or not you set up a new IRA account, can only be rolled once per 12-month period. Hope this helps.

*The above is general information and should not be considered investment advice. Please consult your legal, tax and financial advisors.

Mr. Bennett is a Certified Financial Planner™ professional (CFP®), Chartered Financial Consultant (ChFC®), Accredited Investment Fiduciary™ (AIF®) and Managing Partner of c5 Wealth Management, LLC. He holds a Master of Science in Finance (MSF) with Honors from Indiana University – Kelley School of Business and a BA from the University of Florida. He is currently pursuing his PhD in Economics from SMC University. Mr. Bennett has completed the Advest Institute’s advanced program on portfolio analytics and behavioral finance at Harvard University.

He was recently recognized by Washingtonian Magazine as a Top Financial Advisor and Kiplinger’s Personal Finance Magazine, the Journal of Accountancy and the American Bar Association Journal as Who’s Who of Virginia Certified Financial Planner™ professionals. In addition, he has also been recently selected by the Consumers’ Research Council of America as one of “America’s Best Financial Planners”. He is a current contributor to the Rydex Advisor Benchmarking Index. He is quoted often in the press, has been featured on CNNRadio.com and has contributed to various publications such as U.S. News and World Report, Boomerater.com, Advisor Today, Dow Jones News, Financial Advisor Magazine, Financial Planning Magazine, Investment News, The Washington Business Journal and The Washington Times.

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