FUNDING OPTIONS

Use Your Retirement Funds – Tax Free

Over the past five or six years, retirement funds have become one of the most popular ways, if not the most popular way, of funding small businesses in America. Years ago there were other options that people turned to when starting a business, but due to the economy, the lending environment, unemployment, the housing market, and the large number of people that have left Corporate America, things have been different recently.

FUNDING OPTIONS

Use Your Retirement Funds – Tax Free

Over the past five or six years, retirement funds have become one of the most popular ways, if not the most popular way, of funding small businesses in America. Years ago there were other options that people turned to when starting a business, but due to the economy, the lending environment, unemployment, the housing market, and the large number of people that have left Corporate America, things have been different recently.

For people with retirement funds, whether they’re traditional IRAs, 401K, 403b, 457, pensions, annuities, people are now learning that they can access Their Funds. It is an empowering feeling to know that you can be in control. When I speak with clients that weren’t familiar with this topic and they learn the fundamentals of this funding option, the lights go on. It’s an “ah ha” moment, and I know they’re getting more excited about business ownership…without debt.

You may have heard the nickname Rollover over as a Business Start-up, or ROBS for short. This strategy is also commonly referred to as a Self-Directed 401(k).

If you have an Individual Retirement Account (IRA) or a 401(k) plan from a previous employer worth $30,000 or more, you can “rollover” the money as capital for your new business, without paying taxes or penalties on it.

You are allowed to access these funds with no taxes, no early-withdrawal penalties and no payback requirement, as long as you adhere to Internal Revenue Service Guidelines (IRS). We follow all the IRS Guidelines very closely and monitor the plans carefully throughout the year.

The Flow of Funds

Here’s how it works: Form a Corporation. Then we assist you in rolling funds from your old retirement account into a new 401K plan that we establish for your business. You then wire funds from your new 401K account to your corporate checking account.

Our partners help my clients with each step of the process. It’s key that all of the IRS guidelines are followed. People can’t do this process on their own. They would need to enlist the help of a qualified plan specialist or a third-party administrator like our partners to facilitate the process.

What if your IRA or old 401k doesn’t have enough for your funding needs? Or if you don’t have a retirement fund, or can’t access it because it’s held with your current employer. There may be another way…

Many people are looking at unsecured lines of credit for additional funding or working capital.
The benefit of an unsecured line of credit is that you don’t need to put collateral such as your home on the line, and no financials are required.

Awards & Recognition

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