MIAMI BEACH, FL, USA, May 20, 2022 /EINPresswire.com/ — IRA Financial Technologies, a leading financial technology 401(k) and self-directed IRA plan provider and custodian, has seen an increase in demand from Individuals – Employees and small business owners looking to set up solo 401(k) plans to take advantage of the loan feature. The consumer price index accelerated to 8.3% in April, more than the 8.1% estimate and near the highest level in more than 40 years. Rising prices and rising business costs have caused small business owners to seek additional capital for personal or business purposes. “Due to the very high interest rates surrounding most credit card debt and the heavy financial burden it places on individuals, more and more people are turning to the Solo 401(k) plan lending feature ( k) as a way to deal with rising costs due to inflation, said Adam Bergman, tax attorney and founder of IRA Financial, “The best part about the solo 401(k) plan loan option ( k) is that one can gain tax-free and penalty-free access to retirement funds and use them to pay personal or business expenses, as they have increased quite significantly over the last several months due to inflationary pressures,” Mr. Bergman said.
Section 72(p) of the Internal Revenue Code permits a Solo 401(k) plan participant to take out a loan from their 401K plan as long as permitted under the company’s 401K plan documents.
A Solo 401(k) participant can borrow up to $50,000 or 50% of their account value, whichever is lower. This loan must be repaid over an amortization schedule of 5 years or less with a payment frequency of at least quarterly. Currently, the lowest interest rate that can be used is the prime rate according to The Wall Street Journal, which is currently 4.00%.
The IRA Financial Solo 401(k) plan’s loan feature will allow a sole proprietor or small business owner without employees to borrow up to $50,000 tax-free and without penalty. There are no penalties or taxes due provided the loan payments are paid on time. Loan proceeds can be continued for any purpose. “The Solo 401(k) plan loan can be used to help pay for increased personal or business expenses due to rising prices,” Bergman said.
IRA Financial’s self-directed IRA and solo 401(k) plan platform allows investors to invest digitally in IRS-approved alternative asset investments and with no account valuation or minimum balance fees.
IRA Financial is the fastest growing provider of self-directed retirement plans in the market. IRA Financial has helped over 23,000,000 clients regain control of their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, cryptocurrency and equity investments. ‘private companies.
Adam Bergman, Founder of IRA Financial, has written eight books on the subject of self-directed retirement plans, including “How to Use Retirement Funds to Buy Cryptocurrencies”, “The IRA Checkbook”, “Going Solo”, Turning Retirement Funds into Start-Up Dreams, Solo 401(k) Plan in a Nutshell, Self-Directed IRA in a Nutshell, and in God We Trust in Roth We Prosper.
To learn more about IRA Financial, please visit our website at www.irafinancialgroup.com or call 800-472-0646.
IRA Financial Group
write to us here