Many assume that their 401k is off limits when it comes to investing. A large part of your capital is essentially locked up until the age of 59 ½. With the assistance of specialized attorneys we have found a way for you to invest a portion of your 401k funds without affecting the benefits of your employer-matched contribution. You are allowed to rollover a portion of your 401K without incurring any penalties or any taxation at any time.At times, today’s news can be very startling and alarming in nature . If you follow the financial news, you will notice some disturbing discussions reported over the last few years that have gone from credible rumors to official Federal policy. This new federal program is called “Retirement USA”. In their website they state that , ”Retirement USA is a national initiative that is working for a new retirement system that, along with Social Security, will provide universal, secure, and adequate income for future retirees”.Under this new program, the government could then seize and demand that part of your retirement contributions go into a government-created annuity funded by purchasing Treasury debt.The largest portion of most people’s investments are in their employer-provided 401k…
Under this new program, the government could then seize and demand that part of your retirement contributions go into a government-created annuity funded by purchasing Treasury debt. Sixty to seventy percent of Americans currently have a 401k. 401(k) plans held an estimated $4.4 trillion as of June 2014 in assets and represented nearly 18 percent of the $24.0 trillion in U.S. retirement assets, which includes employer-sponsored retirement plans (both defined benefit (DB) and defined contribution (DC) plans with private-sector and public employers), individual retirement accounts (IRAs), and annuities. The government is looking to target 401(k) assets because of the size and they are under ERISA guidelines which are handcuffs to the employee . The employee cannot move their money out unless they retire, change jobs, divorce or becomes totally disabled. Therefore those with a 401k are stranded and the government knows this.
There is an IRS provision within the ERISA guidelines founded by our attorneys that allows people to move their present 401k funds without taxes or the 10 percent penalty and still receive their employer match. Is this a risk that you really want to take? Do you really want to wager your retirement investments inside your qualified plan that something like this can’t happen in America?
Our firm offers efficient options that give you total control of your investments. One of these options is a Self-Directed IRA. The term “self-directed” simply means that you, as the owner, have complete control over selection with your money, time, and directing your own individual retirement investments. A Self-Directed IRA allows you to expand your investment options beyond stocks, bonds, ETF’s, mutual funds, and cash to further diversity your retirement portfolio.