This retirement plan makes a way for account holders to have access to their retirement savings without paying taxes as well as penalties
Los Angeles, CA (PRWEB) March 21, 2014
Sense Financial, expert in retirement planning, introduces the Solo 401k loan option that can be availed without tax and penalty fees. Sense Financial, the leading provider of Solo 401k, drafts vital documents to assist the application of retirement investors for a Solo 401k plan. The documents included will enlighten each investors and plan holders of any vague information they may find about the loan feature that can inhibit future misunderstandings.
The Solo 401k, stipulated under IRC Section 72(p), is a qualified plan that permits an account holder to avail 401 k plan loans. This retirement plan makes a way for account holders to have access to their retirement savings without paying taxes as well as penalties as long as payment towards the loan are paid on time. Typically, five years or less is the term described in the loan, but the payment towards it must be done over an amortization schedule at least quarterly or monthly.
401k loans can be taken from the account balance at any period in the duration of the plan. The plan’s accumulated balance is used as the collateral for the application of the loan. The maximum that a retirement investor could loan from his account is $50,000 or half of the value in the account, whichever is less. The minimum loan amount must not be any amount lower than $1,000.
The lowest rate is considered to be the prime rate as set forth by the Solo 401k loan rules and its interest rate could not be changed during the entire duration of the loan. There are no requirements or restrictions as to how this tax-free and penalty-free loan is to be used. Some recommendations on where to use the borrowed amount are repayment of personal debts with high interest rate, purchase of personal goods, payment for student tuition, etc.
Sense Financial is California's leading provider of retirement accounts with "Checkbook Control": the Solo 401k and the Checkbook IRA. Over the years, they have assisted hundreds of clients obtain checkbook control over their retirement accounts while providing them with the ability to invest in virtually any investment class, including real estate, private lending, mortgage notes and much more without the need for custodian approval.
To learn more information about Solo 401(k) for self-employed real estate agents, please visit http://www.sensefinancial.com.