Accessing Funds From Your “USA” Account
The USA Plan is not an optional plan. It was designed to generate a $7.4 million nest egg and a $74,000-monthly retirement check for the average American worker. If a worker was allowed to use funds from their USA Account for personal reasons the $7.4 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?
If the account holder dies before the age of 65, the entire balance in the account goes to whoever 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 12% 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 $7.4 Million-dollar nest egg will generate an annual income of $888,000 (12% x $7.4 Million). One month’s income (or 1/12th of $888,000) will be a $74,000 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 at a minimum 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 his or her account.
Short-Term Account Holders
Amounts remaining in the USA of short-term account holders at 65 are treated as follows:
Qualifies for Maximum Monthly Social Security Benefits
If an account holder has already qualified for the maximum monthly benefit under Social Security rules, then he or she has the option to take down the entire account or take it ratably over a period.
For example, if a taxpayer has accumulated $50,000 in his or her USA and has already qualified for the maximum monthly Social Security benefit then they have the option to take down the entire $50,000 or take it ratably over a period.
Does Not Qualify for Maximum Monthly Social Security Benefits
If an account holder does not qualify for the maximum monthly Social Security Benefit, he or she can use the money in the account to buy a for-life annuity that allows them to reach up to the maximum monthly Social Security benefit and to take down the remaining balance, if any.
Those Never Paying Payroll Taxes but Having Substantial Wealth
Those never having had to pay payroll taxes that have enough wealth do not qualify to have USA account. The level of wealth required will be the assets that can generate an income equal to or greater than the maximum monthly Social Security Benefit.
Those Never Paying Payroll Taxes that are Disabled or have Little or Not Sufficient Wealth or Assets
These people still qualify under the 80 or so entitlements programs presently available in the law including disability, welfare, food stamps, housing, etc.