You can borrow against the balance of your 401(k), but the IRS doesn’t allow loans from IRAs. That includes traditional and Roth IRAs, as well as all IRA-based plans such as SEP, SARSEP, and SIMPLE IRAs.
That said, there are some ways to get money out of your traditional IRA or Roth IRA early (as in, before the retirement age of 59 ½) in a pinch.
Options to tap into your IRA account early
1. Withdraw just the contributions
A major advantage of Roth IRAs is that contributions can be withdrawn without incurring taxes and penalties at any time. Investment earnings, on the other hand, are likely to be subject to income tax and a 10% penalty.
The account must also be at least five years old to withdraw investment earnings. For example, if you open a Roth IRA at age 55, you won’t be able to withdraw investment earnings until age 60.
» Read more on Roth IRA withdrawal rules
2. See if you qualify for an exception
In some cases, it is possible to make an early withdrawal from an IRA both tax- and penalty-free. These instances include a qualification due to disability, the withdrawal being made to a beneficiary after the account owner’s death, or the withdrawal is for a first home purchase or build (up to $10,000).
Withdrawals from an IRA outside of these purposes are considered “non-qualifying withdrawal” and come with taxes and a 10% penalty. Still, depending on the circumstances and purpose for the withdrawal, the 10% penalty might not apply.
» See more on withdrawal rules for IRAs
3. Do a 60-day rollover
If you can replace the money in 60 days or less, then a 60-day rollover might be the ticket for you. IRS rules allow you to roll money from one IRA to another one or back into the same IRA, as long as you do it within 60 days. During that time, you can do what you like with the money. It’s a somewhat complicated and risky maneuver, but as long as you follow the rules, you can get money out of your IRA without owing penalties or taxes.
Two big caveats with 60-day rollovers:
- Your IRA provider may withhold 10% of your IRA money for taxes unless you tell it not to. When you put the money back within 60 days, you must be sure to deposit the full amount of the original balance, including the 10%. Otherwise, you’ll owe taxes and an early distribution penalty on the portion that was withheld.
- You must get the money back into an IRA within 60 days or risk the 10% penalty and taxes.
4. Borrow from a 401(k)
If you don’t have any other options, then a 401(k) is one type of retirement plan that often allows loans. That decision is made by the employer, so contact your plan administrator for details.
Keep in mind that when you make 401(k) withdrawals, you must pay the loan back or it will be counted as a distribution from the plan, which means paying a penalty and taxes. Also, if you leave your job, you’ll have to get the full loan amount into an IRA or other qualified plan by the next tax filing deadline or risk owing income tax.
Although inflation and increases in the cost of living means your money may not go as far next year, consider weighing your options before pulling from retirement savings.
Things to consider before raiding your IRA
- The money in your IRA is for your retirement. Taking money out means sacrificing the investment gains you would have earned on that money.
- There may be other alternatives you can explore. For example, a 0% interest credit card intro offer or a peer-to-peer loan might be an alternative. Or, check out NerdWallet’s personal loan calculator to see if a personal loan might work for you.
- Did we mention that IRAs were specifically created for retirement savings? Perhaps it’s not surprising that lawmakers created strict rules around taking money out. Failure to follow the rules brings a hefty 10% penalty and usually an income tax bill, too. Proceed carefully. (Note: The vast majority of withdrawals from a traditional IRA will trigger taxes.)
» Review our picks for the best IRA providers
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The bottom line
Contributions to a retirement account are intended to grow with compound interest over the years, which is why the IRS has rules around early access and withdrawals before retirement age. While you can take out a retirement loan against a 401(k), that's not possible with IRAs. You can't borrow from an IRA, and early withdrawals could incur taxes and penalties. Instead of an IRA loan, consider all other options available to you to find the best solution.
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- 1. Internal Revenue Service. Topic no. 557, Additional tax on early distributions from traditional and Roth IRAs. Accessed Jan 29, 2026.
- 2. Internal Revenue Service. Retirement topics - Plan loans. Accessed Jan 29, 2026.
