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| Smart New Retirement and Financing Tool for the Small Business Owner |
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One
thing for sure...each year thousands of small business owners pay
dearly for withdrawing money prematurely from their IRAs and
retirement plans. Taxes and a 10% penalty for withdrawals before age
59 ½ are often imposed on monies taken out of retirement assets. The
good news is that the Self-Employed 401(k) loan offers an alternative.
But what if you need
to tap your retirement savings? You should do so sparingly, and
only as a last result in order to preserve as much of your
retirement nest egg as possible. We can help you establish a
Self-Employed 401(k) plan for you once you qualify.
As a
result of a new law, which went into effect in 2002, a small
business owner, with no full-time employees or only a spouse as an
employee, can establish a Self-Employed 401(k) plan and take a loan
from the plan. |
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| Summary
of New Financing Tool |
| If you have your own
business (freelancer, consultant, and/or entrepreneur), you can
borrow up to the lesser of $50,000 or 50% of the balance in your
Self-Employed 401(k) plan.
How can you tap into your retirement
fund? We can help you
establish a Self-Employed 401(k) plan. This plan will give you the
flexibility to borrow from your retirement funds whether those funds
were transferred in any amount or contributed into your
Self-Employed 401(k) plan. |
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| Example: |
| Joe and Mary (Husband and
Wife) Design Company's Solo-401(k) Plan |
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Joe's account |
Mary's account |
| starting Balance |
$0 |
$0 |
| Retirement Funds Rolled Over
from previous employer's 401(k) plan |
$0 |
$90,000 |
| IRA Transfers |
$112,000 |
$30,000 |
| Maximum Loan Allowed |
$50,000 |
$50,000 |
| Total Loan Balance Available
as a Couple |
$100,000 |
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Could You Use $50,000?
You
may not be aware that a 401(k) loan is not treated as
a withdrawal; and thus, is not subject to tax and the 10%
early withdrawal penalty as long as you repay the loan
on time.
Following government guidelines, generally, you have 5 years
to repay the Self-Employed 401(k) loan. But you can extend the payments for up to
10 years if the loan is used to acquire a principal residence.
The
interest rate on the loan is usually close to the prime rate.
Your loan payments and interest payments go directly
into your 401(k) account, so essentially you're paying
yourself back.
To
order your Free Self-Employed 401(k) information Kit today,
simply fill out our Application Request Form. Each Information Kit includes a
prospectus that will provide you with detailed information
about the plan, investments, sales charges and expenses.
Please read the prospectus carefully before you invest or send
money. |
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| Top |
| Next Page: Highlights of Self-Employed 401(k) Plan |
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| Apply Online APPLICATION REQUEST FORM Apply Online |
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