In brief, I am projecting out a budget for a personal construction project I am having done, and the numbers are very tight. I have some buffer built in, but if I exceed the buffer amount and my cash flow is restricted (e.g. my clients pay late, etc.), I will need some sort of short term bridge loan. This is about six month down the road, but I am trying to understand my options before wading in.
From Publication 590 it sounds like I can withdraw money ostensibly for the purpose of rolling the money into a new account, but can return the money within 60 days with no penalty. Am I understanding this correctly?
Note that I would not consider this unless I feel 100% confident that I could pay the money back within the 60 days.
Given all of this, am I understanding the rollover rules correctly? Any other pitfalls I would need to be concerned about?