round about way to borrow IRA $
I read a few threads, maybe some here can chime in. A self employed person can open a 401k, and one can transfer $ into that from an IRA. No question there, seems consistent on web sites. What wondered, can I be self employed, with only $1,000 of annual income, open a 401k, transfer in $80k from IRA, then borrow 40k from 401k. Yes there has to be a repayment plan, I am only doing this with the plan I can return to an engineering job in the next few years so I can easly pay it back, transfer 401k back to IRA. with a 5 year payback to 401k, i would use some of the $ for payments, the rest to help live on, along with income from min wage job etc.
I think I will be kinda screwed if I cannot find a good job and complete payback, although I think worst case, I could 72T rule and get some $ that to help payback, and or find a good enough job or something.
I hate to pull $ from IRA, I want a medium term borrow.