<prompt> Human: My son is trying to buy an existing business. Its got really great financials and a long history in business in a field he knows. I was thinking about giving him a loan instead of having him go the SBA route as even if the business goes tits up his mom and I will be fine financially, but wanted to know what the tax ramifications would be. Its a traditional IRA.  <response>: You would need to withdraw the funds which would increase your taxable income by 450k. Come tax time next year, youll likely owe over 100k in back taxes. 