I've seen many people on this site mention being able to use the 60 days allowed to move funds from one IRA account into another as a vehicle for a short-term loan. What do I need to know and beware of to do this? Specifically
- Are there any taxes/penalties if paid back within the time period?
- When does the 60 days start/end?
- Do I need to actually move the money into a new account or can I just move it and add it back into the same account?
- Are there any special forms I'll need to fill out when it comes time to file my taxes?
- Will it affect the limit to how much I can add to my IRAs this year?
The money will come from a Rollover IRA account at Vanguard if that matters. I could pull it from a Roth IRA instead but I think that has disadvantages related to item #5.