Accessing Funds from your USA
The USA Plan is not an optional plan. Were it designed to be one, who in their right mind would trade a $4 million nest egg and a $33,000 a month retirement check for no nest egg and a $2,000 a month check. Since there are no options, the remaining question is when can an account holder access his money.
The Plan requires no withdrawal of funds until 65 years of age.
If the account holder dies before then, the entire balance in the account goes to whoever is designated in his or her will or by applicable law in the case of no will.
Upon reaching 65 years of age the account holder may withdraw monthly an amount equal to 1/12th of10% of the account’s balance. This should approximate the earnings for the year, leaving the balance of the account substantially where it was at the beginning of the year.
The purpose of the USA was not only to build wealth but to avoid having Americans go on welfare. Should he or she decide to take down all or a portion of their nest egg, the Plan requires an account holder to buy a for-life insurance annuity that will pay him until he dies the maximum amount Social Security pays. Every month.
In addition, he needs to buy a health insurance policy that will cover 100% of the cost of catastrophic health events.
After making such provisions, the account holder may take down the balance of his or her account.
Short-Term Account Holders
In the case of older account holders, the situation will occur where the amount in their account at 65 is not the amount that would cover their Social Security and Medicare thresholds.
For example, A man reaches 65 after 5 years in the Plan. He has accumulated $50,000 in his USA. He is still qualified to receive his full Social Security at the top rate. By most measures, he should rebate the amount in his account to the Treasury to offset his future benefits. The Plan has been designed, however, to partially benefit the account holder by having only 50% of the account returned to the Treasury and 50% left in the account to be ratably distributed monthly over a 15-year period.
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