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If you’ve been
waiting for the right opportunity to consolidate your debt, you don’t
have to wait any longer. Here’s a solution - why not
borrow from your retirement account to consolidate your high
interest debt?
Today, more than ever, Americans are taking money from their retirement
accounts to consolidate debt. Under special circumstances using your retirement money
for debt consolidation may be a smart move.
Thanks to new tax laws, even after you've left your job you can
borrow from your retirement savings. |
- If you have or start a business with no employees, or if you
are an independent consultant you can open an individual 401(k),
called a Self-Employed 401(k) or Solo 401(k), and borrow from
it the same way employees with big companies can with their 401(k)s.
If you do not have a business, you may be able to use the 403b loan program that is very
similar to the 401(k) loan.
- Transfer tax-free your IRA, 401k from a previous employer, and
other qualified retirement account to your Self-Employed 401(k)
plan.
- You can borrow up to the lower of $50,000 or 50% of the balance
in your Self-Employed 401(k) account. This type of loan
is tax-free and penalty-free as long as it is paid back timely.
Your principal and interest payments go back into your account.
Therefore, a loan from your Self-Employed 401(k) can be smarter
than a taxable withdrawal from your IRA (loans from IRAs are not
allowed) or other retirement money to consolidate debt.
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| Why
It Makes Sense to Consolidate Your Debt? |
nbelievably, the average credit card interest rate today is still
sky high, a big obstacle to getting rid of your debt.
You’ll be glad to
know that your retirement loan requires no credit check, no long
application forms, and carries a low interest rate (prime rate at
time loan is taken - recently prime rate has been around 4%).
Imagine what you
can do with the savings you'll achieve! What’s more, the interest
you pay is fixed
for the duration of the loan, which is generally up to 5 years. Take
advantage of the existing historic low interest environment by locking in
your low rate retirement loan now.
Since taxes are not
imposed on your loan, you get to keep more of your retirement nest
egg. Also, your payments including interest go back into your
retirement account, not
to a bank or credit card company. You get to preserve your retirement
nest egg while improving your financial situation!
We offer an easy
and convenient online way to get a Self-Employed 401(k) or 403b plan. Just
fill out our Application
Request Form to get your free kit. It’s that easy! You’ll even
be able to print out all of the necessary documents (PDF forms) from
your printer and review them at your convenience!
We urge you to use prudence and good judgment when borrowing from
your retirement account. And only borrow if you are sure you
can pay back the loan on schedule, otherwise taxes and possible
early withdrawal penalties will apply and make this a very expensive
method of financing.
So get a fresh start today by getting rid of your high interest rate
credit cards ! Use you retirement funds to invest in
yourself and in your future. |
* Our minimum account size to start a Self-Employed 401(k) or 403b is
$10,000. The Self-Employed
401(k) and 403b plans are managed by Pioneer Investments. You’ll
get to choose from one of their family of mutual funds. Read the prospectus
for information on mutual fund fees and management strategy before investing. Mutual fund returns and prices fluctuate, and shares, when
redeemed, may be worth more or less than original cost.
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