Entrepreneurs can rest easy if they do not get on the TV show Shark Tank to raise money for their business, with IRA Financial Group Solo 401(k) Plan they can use up to $50,000 of their retirements funds to finance their business
Miami, FL (PRWEB) March 13, 2013
IRA Financial Group, the leading provider of solo 401(k) plans for self-employed and small business owners, has seen a growing number of entrepreneurs using the Solo 401K Plan business financing solution to help finance their business.
“Entrepreneurs can rest easy if they do not get on the TV show Shark Tank to raise money for their business, with IRA Financial Group Solo 401(k) Plan, they can use up to $50,000 of their retirement funds to finance their business without tax or penalty,” stated Adam Bergman, a tax attorney with the IRA Financial Group.
Internal Revenue Code Section 72(p) allows a Solo 401K Plan participant to take a loan from his or her 401K Plan so as long as it is permitted pursuant to the business’s 401K Plan documents.
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 lowest interest rate that can be used is Prime as per the Wall Street Journal, which is currently 3.25%.
With IRA Financial Group’s Solo 401K loan feature, an entrepreneur who is self-employed individual or small business owner with no employees can borrow up to $50,000 tax-free and penalty free. There are no penalties or taxes due provided loan payments are paid on time. “The Solo 401(k) Plan loan has proved to be an attractive financing option for entrepreneurs seeking additional financing for their business,“ states Mr. Bergman.
IRA Financial Group’s Solo 401k Plan documents will allow a self-employed individual to use a loan from your Solo 401k for any investment purposes, including real estate, funding your business or a new business, tax liens, private placements, etc.
As a result of the recent economic meltdown, banks and other financial institutions have significantly limited their lending capacity to self-employed business owners, thus, causing grave financial pressure on self-employed business owners. IRA Financial Group’s Solo 401k Plan is a perfect structure for any self employed business owner seeking immediate funds for their business. The Solo 401(k) Plan loan is the only tax-free and penalty free way a self-employed individual or small business owner with no employees can use their IRA or 401(k) Plan retirement funds to finance or fund their business.
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 leading provider of Solo 401(k) Plan 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 and private business investments 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.