Accessing Money from Your Existing Retirement Accounts (Houston, TX)

BORSA stands for Business Owner's Retirement Savings Account Plan. BORSA is a tool which allows you to fund the purchase of a franchise, business start-up, or business property using your holdings in a 401(a) pension, profit sharing 401(k), 403(b), 457, or IRA rollover. Through the utilization of a BORSA these purchases can be accomplished without distributions, taxes, penalties, or the use of retirement plan loans.

The following newsletter from financial expert, Suzy Granger, will help you learn about a technique to access money from your existing retirement account.

Greetings! From Suzy Granger

We are often asked about accessing money from retirement accounts while still working for another company. In retirement plan terms this is referred to as an "In-Service Distribution". While the law provides the option for plans to allow this it is rarely available. Most plans require that you separate from your employer before you can access or rollover the money.

A number of plans do allow for participants to borrow money from their plans while remaining employed. These borrowings are restricted to the lesser of $50,000 or 50% of your vested account and must be repaid over no more than 60 months, with payments at least as frequently as quarterly at market interest rates.

Additionally, if you separate from your employer and have not repaid the loan from the plan it will create a taxable distribution. If you are thinking of investing money from your retirement account in your own venture give us a call and we will be happy to walk you through your options.

In closing, a friend writes:

"Hello Suzy, I just wanted to send you a quick note to let you know how much I appreciate all that you have done for me and my family. My husband and I were looking for a career change and you guided us painlessly into the right direction to follow our dreams while leaving behind the corporate lifestyle we have both been strapped to for years.

I came into this venture clueless in all of the process needing to take place. You made it very easy for me while always explaining each step along the way. You and Darci both were very helpful and always accessible. What a pleasure to get a voice in today's world when you call someone. You both usually answered every time I called and if I had to leave a message the call was returned within minutes, even on the weekends. Both of you are full of answers and guidance and never annoyed at the times you have had to re-explain a process once or even multiple times!

We are now in the final stages of this process and about to start construction on our first of two franchise locations. This would not have been possible without your guidance and support. Thanks for all your hard work and attention. You truly are a customer care advocate and it shows!

Thanks for making my dreams of working for myself and allowing myself to be more available to my family. Words can not describe the amount of joy you have given back to my familiy! Thanks again!."

Shelli Beck
Massage Heights Owner
shellibeck@yahoo.com

What is a BORSA?

BORSA stands for Business Owner's Retirement Savings Account Plan. BORSA is a tool which allows you to fund the purchase of a franchise, business start-up, or business property using your holdings in a 401(a) pension, profit sharing 401(k), 403(b), 457, or IRA rollover. Through the utilization of a BORSA these purchases can be accomplished without distributions, taxes, penalties, or the use of retirement plan loans.

For the Complete BORSA Handout, Click here.
Click here for the official BORSA website.