Utilizing Your 401(k) or IRA To Purchase A Business


Did you know that you can use your 401(k) or IRA Rollover Assets to finance your franchise or business investment?  This can be done before the age of 59 1/2 without incurring any penalties or tax consequences.  The tax code allows you to transfer money out of a qualified retirement plan to purchase stock in your own business.  It’s sort of a self-venture-capitalization.  Be sure to consult with an attorney or accountant before making any final decisions.

Self-Reliant 401(k) Business Funding – The benefits are powerful:
  • You invest your retirement fund in your business - without taxes or penalties
  • You use a safe, proven plan based on long standing provision of the IRS
  • You use per-tax dollars to fund your business
  • You gain business equity and an improved cash flow position from the start
  • You can use the funds to receive a salary during startup
  • You accelerate business profitability by eliminating or reducing interest and debt
  • You secure funding fast - typically two to three weeks or less
  • You can set aside tax deductiable retirement savings of up to $200,000 per year
  • You optimize business equity and value
The money may be used to reduce or eliminate the need for business loans, build equity in your company, build wealth for you and your employees in your retirement plan, enhance cash flow plus you can take full advantage of potential tax benefits.    

If you have funds that are locked in a retirement fund, we can access those funds to help you realize your dream of buying a business through our relationship with this company. If you want more information, please contact us.