The self-directed 401k retirement policy is what you need if you want to ensure your financial stability when you retire. There are numerous points you need to learn and understand if you are looking for ways and means to maximize your retirement savings. For instance, know the fundamentals of the 401k transfers and loans. It is possible to access your money and borrow your retirement funds for any purposes you deem necessary. As long as you comply with the rules, terms and conditions, you have the right to boost your retirement funds and enjoy seeing your money grow.
The Fundamentals of the 401k Transfers
Borrowing money from your retirement plan is convenient, hassle-free and easy. What makes the Owner-Only retirement account attractive to qualified individuals is that it allows plan owners to borrow their retirement funds for investment and other use. Enjoy easy 401k withdrawal through the Checkbook Control feature of the retirement policy.
Here are some of the other points to be considered and understood with the Individual 401k retirement account and its loan features:
- Plan owners could borrow up to $50,000 or 50 percent of their overall or total retirement plan values whichever is less. Policy holders could use their money in any investment field or purposes such as paying bills, credits and debts, tuition fee or start up a business.
- The 401k transfers money to your investment with a Checkbook Control feature thus guaranteeing easy and convenient access. Borrowed funds must be paid off in a quarterly basis the least.
- Plan owners are obliged to pay the minimum interest rate incurred during the loan based on their current prime.
- It is essential that the loan must be paid in its full amount with the inclusion of the interest.
- One of the general 401k withdrawal rules is that the loan default may incur IRS penalty.
Who are eligible for the Solo 401k Plan?
The Individual 401 k retirement policy could be opened and established by individuals who are highly qualified. Here are two of the main eligibility requirements for the Self-Directed retirement plan:
- The plan owner must be self-employed. In cases of employment, he must have specific qualified positions such as an independent contractor or consultant.
- The plan owner in order to enjoy the benefits of the 401k transfers and loan must be a small business owner. The company therefore must not have any full-time employees except the owner’s spouse.