Veterans Turning to Solo 401(k) Plan Loan as a Means of Financing New Start-Up Business, According to IRA Financial Group Attorney

Share Article

Solo 401(k) Plan loan will offer veterans up to $50,000 tax-free and penalty-free to use for a business-start-up or franchise

Solo 401(k) Plan loan will offer veterans up to $50,000 tax-free and penalty-free to use for a business-start-up or franchise

The Solo 401(k) Plan loan feature contained in IRA Financial Group’s solo 401(k) Plan, allowed our military veterans to borrow up to $50,000 tax-free and penalty-free and use those funds for any business purpose

IRA Financial Group, the leading provider of self-directed solo 401(k) Plans, has seen an increase number of military veteran’s establish solo 401k plans in order to take advantage of the tax-free loan feature for purposes of financing a new business or franchise. “Our solo 401(k) Plan has allowed a significant number military veterans unlock over $7.5 million in retirement funds tax-free and penalty free in 2013,” stated Susan Glass, a senior paralegal with the IRA Financial Group. “The Solo 401(k) Plan loan feature contained in IRA Financial Group’s solo 401(k) Plan, allowed our military veterans to borrow up to $50,000 tax-free and penalty-free and use those funds for any business or entrepreneurial purpose," stated Ms. Glass.

A solo 401k loan is permitted at any time using the accumulated balance of the solo 401k as collateral for the loan. A Solo 401(k) participant can borrow up to either $50,000 or 50% of their account value - whichever is less. This loan has to be repaid over an amortization schedule of 5 years or less with payment frequency no less than quarterly. The interest rate must be set at a reasonable rate of interest - generally interpreted as prime rate as per the Wall Street Journal. As of 11/13/13, the Wall Street Journal prime rate is 3.25%, which means participant loans may be set at very reasonable Interest rate. The Interest rate is fixed based on the prime rate at the time of the loan application.

According to Adam Bergman, "a tax attorney with the IRA Financial Group, as a result of the recent economic meltdown, banks and other financial institutions have severely limited their lending capacity to self-employed business owners, including military veterans. As a result, making it more difficult for veterans to secure the necessary financing for starting a new business. The Solo 401(k) plan is a perfect structure for any self-employed business owner seeking immediate funds for their business or to help pay personal expenses.” With IRA Financial Group’s Solo 401(k) plan, plan participants can borrow up to either $50,000 or 50% of their account value - whichever is less to help finance or operate their business.

According to Mr. Bergman, “over the last four years we have helped our clients get tax-free access to over $85 million in retirement funds via the Solo 401K loan feature that were used for personal and business related purposes.”

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market's leading provider of “checkbook control” self-directed IRA LLC retirement solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jaclyn Baily
IRA Financial Group, LLC
+1 (800) 472-0646 Ext: 9
Email >
Visit website