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?

  • 401(k)
  • 403(b)
  • Traditional IRA
  • Keogh
  • TSP
  • SEP

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.