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How to Borrow From Your Retirement Account in South Carolina

By Business & Finance Last updated Sunday, June/30/2024

1). Make a withdrawal from your retirement account. Keep careful records of the dates of all transactions. You will only have 60 days to return the money to your retirement account without incurring penalties. There are no restrictions on how you use the money, assuming you repay it on time and in full.
2). Re-deposit the money into the same IRA or another IRA. Deposit the same denomination. Give yourself a few extra days to make sure that the money is safely in place in your bank account on the 60th day.
3). Avoid taking another loan from the same retirement account for one full year. Two deductions from the same account will trigger all of the applicable South Carolina and federal tax implications.
4). Report the retirement withdrawal on your federal income tax form. Indicate that the withdrawal and deposit were a "rollover."
5). Report the retirement withdrawal and deposit on your South Carolina state income taxes. Indicate that the transaction was a "rollover" on the form.

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