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| Plan Loans - Personal Loan, Business Loan & Small Business Loan |
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WHEN YOU TRULY NEED CASH for any reason, a loan from your retirement plan may be an option available to you if you have your own business. At www.InvestSafe.com we provide a self-employed 401(k) that allows you to borrow from it quickly, with no hassles, no credit check, and for any reason.
Simply rollover or transfer any qualified retirement money from an IRA, a previous employer's 401(k), 403(b), or another retirement plan, in any amount tax-free to your new self-employed 401(k) with a loan feature. You can borrow up to a maximum of $50,000, but no more than 50%, of the account balance in your self-employed 401(k). The loan can be used for any purpose. When you follow the IRS loan repayment guidelines your loan stays TAX-FREE and PENALTY-FREE. |
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| Features |
Loans from the self-employed 401(k) have the following features:
- Low interest rate (prime rate fixed for term of the loan)
- No credit check
- Quick-and-easy application process
- All payments returned to your own account
- Completely confidential |
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- Tax Advantages
Compare taking a loan from a self-employed 401(k) to taking money from an IRA or another retirement account. The example below shows how the loan option allows you to keep more of your money.
Example:
If you tap your IRA or other retirement funds, a large chunk of your money may disappear in Federal, State, and Local taxes. And, that's not counting a possible additional 10% IRS early withdrawal penalty tax byte.
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| OPTION # 1 |
OPTION # 2 |
| Withdrawal directly from IRA, 401(k) or other Retirement Account |
Loan from Self-employed 401(k) |
| Cash distribution |
$50,000 |
Loan |
$50,000 |
| Federal, state and local income tax |
-20,000 |
Federal, state and local income tax |
0 |
| 10% early withdrawal penalty |
- 5,000 |
10% early withdrawal penalty |
0 |
| Available for your use |
$25,000 |
Available for your use |
$50,000 |
| Hypothetical example assuming a non-exempt distribution with a combined 40% federal, state and local income tax bracket. Your tax bracket may differ. Consult your tax or legal professional for tax advice. |
Read prospectus for information on fees and other details before investing. Loans not repaid are subject to taxes. |
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- Pay Interest to Yourself
One of the other key features of these retirement loans is that all of the principal and interest you pay are deposited to your account. Thus, you get both the loan you need as well as continue to save for your retirement.
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| How to Qualify |
The self-employed 401(k) is for business owners only. You can be self-employed, an independent contractor, in a partnership, or own a corporation. Your business can even be home-based. Your business qualifies as long as you have no employees other than a spouse, or occasional helpers who work fewer than 1,000 hours per year.
To open an account with us we require a minimum investment of $10,000 by rollover/transfer or direct funding to your self-employed 401(k). Money placed in the Cash Reserves fund does not count toward the minimum. |
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| How to Get an Application and more Information |
To receive a free kit on the self-employed 401(k) with a loan feature fill out the Request for Application form.
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| Points to be aware of before Borrowing from
your Retirement
Accounts |
- Most 401(k) loans have to be repaid within 5 years (10 years if used to pay for a primary home).
- If you default on the loan, the unpaid balance may be treated as an early distribution from your 401(k) triggering taxes and a 10% penalty.
- Missing even a single loan repayment can trigger a loan default, and the loan cannot be reinstated.
- When you borrow against your 401(k) the loan comes from the sale of part of the mutual fund shares in your retirement account.
- Before borrowing ask yourself, can I benefit more by making use of this loan money now, or is it better for me to leave the money in my retirement account.
We offer an easy and convenient online way to get a Self-Employed 401(k). Just fill out our Application Request Form. 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!
What’s more…there is no obligation on your part! |
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