Retirement funds for business capital -
Have you ever wanted to start your own business but felt that you lacked the necessary funds to get up and running? Or have you been a victim of a job layoff and now need to create your own income and hence, your own business? If so, read on.
Because there is a great tax efficient way that you can use your existing retirement funds as start-up capital for your new business venture.
Because there is a great tax efficient way that you can use your existing retirement funds as start-up capital for your new business venture.
What's your definition of retirement? Golf, reading, gardening? Or maybe it's something more active. Maybe for you, "work" isn't a dirty four letter word at all. Perhaps you get more "intrinsic value" out of life by being involved in the business world as opposed to running errands, playing bridge and having coffee.
Is there some business idea that motivates you? Some concept that you've been wanting to do your entire life? Work with family members, friends, colleagues?
As you know by now, when properly structured, you can utilize your retirement funds as start-up capital for a new business - and without paying taxes. How much of your retirement funds should you use? Only you can make that decision. But taking a portion of your retirement account to create your own work environment might be much more satisfying than trying to find someone who will provide you with the right opportunity for your interests and skill set.
Just exactly how does this process work? Let's take a look, step by step:
- A new corporation is formed (we'll call this "NewCo")
- NewCo adopts a new "qualifed" retirement plan (401(k) plan)
- Individual transfers existing retirement account (IRA or employer 401(k)) to NewCo 401(k) plan
- NewCo 401(k) plan invests in qualified employer securities of NewCo; NewCo now has start-up funds
- NewCo purchases new or existing business
Should you use some of your retirement funds as start-up capital for a business? Well that depends on many factors, including your business management experience, what industry you choose, etc. But for some, this may be the best way to their business up and running.
If you'd like to have a discussion on how this business funding method might work for you, please fill out the Contact IWS form and send us an email.
If you'd like to have a discussion on how this business funding method might work for you, please fill out the Contact IWS form and send us an email.
TECHNOLOGY / START-UPS
Tired of Looking for Work, Some Create Their Own
By MATT RICHTEL and JENNA WORTHAM
Published: March 14, 2009
Some laid-off workers are turning to their inner entrepreneur, in what could be a boon for the economy.
Read the article
Tired of Looking for Work, Some Create Their Own
By MATT RICHTEL and JENNA WORTHAM
Published: March 14, 2009
Some laid-off workers are turning to their inner entrepreneur, in what could be a boon for the economy.
Read the article