THE BOTTOM LINE

You can buy a franchise, start a new business or provide working capital for an existing business…with a Self Directed IRA, 401(k) or other common pension and retirement plans. Funds are transferred from one qualified retirement plan to another. Distribution is not part of the process and there are no tax consequences.

Be Your Own Boss

In today’s complicated economic environment, many people are opting to become their own boss. Some are starting home based businesses and others are purchasing franchises or buying existing businesses.

A “non-traditional” funding source for business financing is the use of an existing retirement plan such as an IRA, 401(k), Keough or other type of pension plan.

IRA Business Funding:  Approved By The IRS

According to the Employee Retirement Income Security Act (ERISA) of 1974, this is a completely legitimate strategy…just not well known.

IRS Code Sec. 401 IRC 408(a) (3) states only two types of investments are excluded under ERISA and IRS Codes: Life Insurance Contracts and Collectibles (works of art, rugs, jewelry, etc.)

Your IRA May Be Your Best Option For Funding Your Business

The Business Funding plan may well be your best option…even if you have other options. Think about the possibilities…you can operate the business, draw a salary and contribute to your retirement plan with profits from the business.

Advantages for this type of funding strategy include the following:

- An all-cash purchase of a business eliminates the need for debt financing
- Funds can be used as a down payment to secure additional financing
- Profits enjoy tax-advantaged status by being directed back to your 401k
- As an owner of the business, you may draw a salary and receive benefits
- Family members may be employed by the company and draw salaries

Retirement Funding Offers More Control

The thought of using retirement funds can cause some apprehension. But, consider that through this investment strategy, an individual actually has “more control” over the retirement plan than with “traditional” options.

Business Funding as a Wealth Building Strategy

Instead of being dependent on the stock market, retirement savings are actually being invested in one’s own business. With this approach, an individual may be able to realize a much better return on investment.

3 Simple Steps

Is this a complicated process? Yes, but our professionals and consulting attorneys make it easy. It can be boiled down to 3 simple steps:

Step 1: Establish a C-corporation, which then creates a retirement plan
Step 2: Funds are rolled over into the corporation’s new retirement plan
Step 3: The new retirement plan purchases the stock of the corporation

Fast, Efficient & Cost Effective

The entire process generally takes 2 to 4 weeks to be completed, and can be done by phone, email, fax, express or regular mail.

 Additionally, you’ll save thousands of dollars by using professionals who specialize in this strategy rather than trying to piece it together with Attorneys, CPAs and others who don’t have the specific training to do it right the first time.

Your Next Step

For immediate analysis of your situation and the best strategy for your investment interests, call us today at 877-229-9763.

Plan Structure

Click on the image at left to view a diagram of the Business Funding Plan structure. For more information about all of our self directed IRA plans and how our turn-key setup process works, please view the How our Process Works page.