can my 401k be used as collateral for a loan
IRA Money. The IRS doesn't allow you to use an IRA as collateral for a loan. IRS Publication 590 classifies this as a prohibited transaction, along with things like buying property for personal benefit.You can't get around the ban by borrowing directly from the IRA -- that is also a prohibited transaction.RA Money. The IRS doesn't allow you to use an IRA as collateral for a loan. IRS Publication 590 classifies this as a prohibited transaction, along with things like buying property for personal benefit.