Super Storm Sandy to Increase Demand For Solo 401(k) Plan Loan Option, According to IRA Financial Group
Hurricane Sandy's horrific destruction will require many Americans to tap into their 401(k) Plan in order to pay for the cost of repairing the damages
Miami, FL (PRWEB) November 01, 2012
IRA Financial Group, the leading provider of IRS approved self-directed solo 401(k) plans expects an increased demand from victims of Hurricane Sandy for the loan feature inherent in IRA Financial Group's solo 401K Plan. “By using the solo 401(k) plan loan feature, an individual can borrow up to $50,000 to help pay for damages caused by the super storm Sandy,“ stated Adam Bergman, a tax attorney with the IRA Financial Group. 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 November 1, 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 enormous devastation caused by Hurricane Sandy, many Americans will need to access some of their retirement funds in order to help pay for some of the damage caused by the storm,” stated Mr. Bergman. “A self-employed individual will be able to borrow up to $50,000 of retirement funds tax and penalty free to help pay for any damages caused by Hurricane Sandy,“ stated Mr. Bergman.
The solo 401k or individual 401k plan loan feature is a perfect solution for any self-employed business owner seeking immediate funds to help pay for any damages caused by Hurricane Sandy. Solo 401(k) participants can borrow up to either $50,000 or 50% of their account value - whichever is less to help finance or operate their business. 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 plan and will assist with the completion of the loan process. 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, Dewey & LeBoeuf LLP, and Thelen LLP.
IRA Financial Group is the market's leading self-directed solo 401(k) plan facilitator. 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 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.
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