Taking Control of Your Money 

If you are tired of watching the Wall Street Casino drive your retirement dreams up and down, and not go anywhere, your should consider investigating the “In Service Non-Hardship Withdrawal” from your retirement plan. 

Many employers, especially the larger companies, allow this. And if they don’t at present, you can lobby for them to add it at the next open enrollment. What this accomplishes is to allow you to take control of your money, and place it where it has the best chance of growing.

The In Service Non Hardship Withdrawal privilege allows you to remove your money from your corporate retirement plan prior to retirement. It simply states that you can withdraw it, and do either of two things with it

1) Cash it out and spend the money – This is not recommended, but it you have an emergency (other than divorce where there are other alternatives), you can withdraw your money, pay the associated tax and do what you need with it. If you are under 59 ½ you ill also incur tax penalties on the money of 10% federal and whatever penalty your state applies. As an example, California has a 2.5% tax penalty on top of the federal excise tax.

2) Rollover to a plan you control – In this case, you can roll it over to an IRA, or a self directed IRA. In this case, there are no taxes or penalties applied at present, and you can invest it as needed.

What you do with the money once it is outside the control of your employer is up to you. Some examples are:

1) IRA – place the money into an IRA and invest in traditional methods. Stocks, bonds, mutual funds for those that enjoy the Wall Street Casino, or fixed accounts such as bank products can work, but again the rate of return is usually nominal. Annuities can be a viable choice here as well, and you can choose from a variety of products that may service your needs.

2) Self Directed IRA – this is a specialty product that allows you reinvest your money into private equities, or real estate. This can be a little more speculative, but if you have confidence in less “Public” investments, this can be a viable option. The Self Directed IRA is most commonly used to purchase real estate, and as long as you do not use if for personal use (residential properties), it can be viable. Real estate can be more complex in the retirement plan, so we recommend you consult a professional, such as a financial planner or CPA with knowledge in this arena.

3) Solo 401k – By reinvesting your In Service Non Hardship Withdrawal funds into a Solo 401k platform, you are again in the Self Directed environment, but with more control and options than the other mechanisms. Here not only can you invest in private equities or real estate (even mortgage notes), but you can also use this platform for family banking, private business ventures,  or debt liquidation. 

The In Service Non Hardship Withdrawal can be a powerful tool to help you take control and leverage wealth. Use it wisely, protect your assets, and grow your bottom line.

Contact us today at (800) 341-5433 or via this contact form to learn more about the opportunities associated with this strategy.