Sense Financial individual k plan features the most versatile loan available for self-employed individuals and small business owners. It allows participants of the retirement plan to borrow money from their individual k funds for any purpose whatsoever.
The individual k plan loan can be acquired at any time by participants of the 401 k plans for individuals in accordance with the internal revenue code section 72(p). The 401 k plan loans are attainable using the existing balance of the policy holder’s account as collateral for the individual k plan loan.
How the Individual k Plan Loan Works
An individual k plan holder can take up a loan of up to 50% of their total accumulative retirement account or $50,000 (whichever is lower) anytime by using the remaining balance of the account as collateral for the loan. The policyholder should submit a loan document to avail the individual k plan loan and simply write a check using the checkbook account of the retirement plan to acquire the borrowed money, tax and penalty free.
The 401k plan loan has an amortization period of 5 years or less and can even be extended to 15 years, if the loan amount is used to purchase the participant’s primary residence. The individual k plan loan should be paid on a quarterly basis, including the interest amount. The interest is fixed and is based on the prime rate when the loan application was submitted, plus 1%.
Purposes of Obtaining an Individual k Plan Loan
The individual k plan loan can be procured for any reasons that a participant can think of. It can be used for any investment opportunity, such as acquiring real estate properties, funding a start-up business and even refinancing another loan.
The individual k plan loan is so versatile that it can be used for the following reasons:
- Purchasing a retirement home
- Paying a debt
- Tuition Fee payments
- Mortgage payment
- Paying off credit card debts
- To help pay for your children’s College expenses
- Investing in stocks and currency market
- Expanding your business
- Buying furniture and other equipment
- Down payment for a new car
- Unexpected expenses caused by emergencies
The individual k plan loan feature is the answer to all your investment and financial problems. It can be easily attained, with fast processing time and a low interest rate.
For additional information on how you can avail of the individual k plan loan, contact one of Sense Financial 401k experts.