Accessing Funds from your “USA” account
The USA Plan is not an optional plan. It was designed to generate a $4 million nest egg and a $ 33,000-monthly retirement check for the average American worker. If a worker was allowed to use the USA fund for personal reasons the $4 million goal would never be reached. Therefore, the Plan mandates no withdrawal of funds until 65 years of age. Since there are no options, the remaining question is when can an account holder access his money.
We believe the USA Plan will be so successful that the account holders will eventually encourage their politicians to amend the law to allow various exceptions to the withdrawal rules. It is our hope that the “65-year” rule will stay in effect for at least the first ten years from enactment before any changes are made.
If the account holder dies before the age of 65, the entire balance in the account goes to whomever is designated in his or her will or goes to those designated 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 of 10% 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.
For example, a $4 Million-dollar nest egg will generate an annual income of $400,000 (10% x $4 Million). One month’s income (or 1/12th of $400,000) will be a $33,000 a month retirement check.
The purpose of the USA Plan was not only to build wealth but to avoid having Americans go on welfare. Upon reaching 65 years of age should the account holder 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 or she dies the maximum amount Social Security currently pays every month.
In addition, the USA Plan requires the account holder to buy a “health insurance policy” that will cover on-going medical needs as well as 100% of the cost of catastrophic health events.
After making such provisions, the account holder may take down all or part of 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 account. He is still qualified to receive his full Social Security at the top rate. The Plan has been designed to distribute the entire amount to the account holder over a ten-year period. In the case of death the balance remaining will be distributed to his or her heirs.
For example, in this case the above, assume the taxpayer gets a $2.500 check from Social Security. In addition. he gets a $417 a month from his $50,000 USA Fund. ($50,000 divided by 10 years is $5,000 a year or $417 a month) for a total check of $2,917 a month.
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