401(k) To Finance A Start Up
Using your 401(k) to finance a start up is a revolutionary way to fund your dream business start-up is here, and GLO CPAs can help you reach your goals. With an exciting opportunity known as Roll-Over for Business Start-up, or ROBS, entrepreneurs looking to buy or invest in their dream company now can, using the money they have in their retirement plan.
If you’re looking to start up a business, but are certain there’s little chance of obtaining a bank loan, it’s time to contact GLO CPAs to start using your 401(k) to finance your start up.
This process, known as 401(k) small business financing or Roll over for business Startup, is a little known process that has become recently popular for entrepreneurs in the past couple of years. It requires extreme knowledge on Employee Retirement Income Security Act of 1974, also known as ERISA and the Internal Revenue Code of 1986(IRC) something that our Accountants here at GLO CPAs are well-versed in. So let up be your guiding light in starting the business of your dreams and don’t traverse these waters alone.
Funds from your current retirement plan can be rolled over into the 401(k) of a C-Corporation. From there, the C-Corporation issues all of its stock and transfers it into a new profit-sharing plan in exchange for the cash in the plan. This provides cash on hand to fund your pursuit of business opportunities.
These steps may seem easy, but you’re going to want a CPA like GLO CPAs to guide you through this process, as there is much planning and very serious legality involved in the situation.
The best part? When done correctly, the rolled over retirement plan can possibly avoid tax or penalties.
- You, with our careful guidance, establish a C-Corporation to serve as the operating entity of the business.
- We’ll help you design a 401(k) plan, which will be sponsored by your newly-made corporation.
- From there, the 401(k) plan invests in the corporation or the stock o f that new business in a cash-for-stock transaction.
For more information on this process, or to kick off the start of the business you’ve always dreamed of. Please contact GLO CPAs and get in touch with one of our talented financial experts to see how we can help you.