The beauty of the solo 401(k) plan business Debt Re-Payment Program is that a self-employed business owner can tap into his or her retirement funds to pay off debt tax-free and penalty-free
Miami, FL (PRWEB) August 30, 2012
IRA Financial Group, the leading provider of self-directed solo 401K plans introduces the solo 401(k) Plan Debt Re-Payment Program. With IRA Financial Group’s solo 401K plan Debt Re-Payment Program, a self-employed individual or small business owner with no full-time employees can use up to $50,000 of their retirement funds to pay off debt, such as a credit card, student loan, a mortgage, or even the IRS. “The beauty of the solo 401(k) plan business Debt Re-Payment Program is that a self-employed business owner can tap into his or her retirement funds to pay off debt tax-free and penalty-free, “ stated Adam Bergman, a tax attorney with the IRA Financial Group. “With the solo 401(k) plan Debt Re-Payment Program, the self-employed business owner would be paying back the solo 401(k) plan and not a bank thereby increasing the value of the plan at the same tome of gaining tax-free access to the retirement funds to pay off debt, “ stated Mr. Bergman.
A self-employed or small business owner can take a solo 401k loan 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 August 30, 2012, the Prime Rate is 3.25%. The Interest rate is fixed based on the prime rate at the time of the loan application. The solo 401k loan is received tax-free and penalty free.
As a result of the recent economic meltdown, banks and other financial institutions have significantly limited their lending capacity to individuals, thus, causing grave financial pressure on Americans with debt. The self-employed 401k plan Debt re-Payment Program is a perfect structure for any self-employed individual seeking immediate funds to pay off debt, creditors or student loans. Solo 401(k) participants can borrow up to either $50,000 or 50% of their account value - whichever is less to help pay off or reduce their personal debt. There are no penalties or taxes due provided loan payments are paid on time.
IRA Financial Group will take care of setting up the entire solo 401k business funding solution. The whole process can be handled by phone, email, fax, or mail and typically takes between 2-10 days to complete, the timing largely depending on the custodian holding the retirement funds. IRA Financial Group’s 401k experts and tax and ERISA attorneys are on site greatly reducing the set-up time and cost. Most importantly, each client of the IRA Financial Group is assigned a tax attorney to help with the establishment of the solo 401k business funding solution.
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 and Dewey & LeBoeuf LLP.
To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646.