RETIREMENT ROLLOVERS FOR BUSINESS STARTUPS
What is a Retirement Rollover for Business Startups?
Thanks to the Employee Retirement Income Security Act of 1974 (ERISA), you can legally invest your own eligible retirement account funds into launching or buying a business of your own without a taxable event.
What accounts are eligible?
- Traditional IRA
As a standard practice, the funds must be eligible for rollover. If they are with an employer-sponsored plan (401(k), for example), you can not rollover the funds if you are still employed by that employer. Additionally, the rollover is most effective when a minimum of $40,000 is rolled over.
What are the benefits?
- There is no taxable distribution and no early withdrawal penalties
- Avoid time consuming loan applications
- Very quick turnaround time
- Use the money to buy a company, a franchise, pay salaries, pay for marketing and advertising, buy office supplies, pay rent and more
- You can pay family members a salary if they are legal and active employees
- Credit history does not matter
- No age requirements
Retirement rollovers for business startups are a great way to legally invest your eligible retirement account funds into a new small business or franchise without taking a taxable distribution or needing apply for complex loans.
Do you have retirement funds and are looking to start or acquire a business?
Take the next step for your financial future and contact us to get started.