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401K Business Funding
Quick Summary
This is not a franchise. It is a way to fund your new business. Did you know you are allowed to convert your 401K or IRA account into cash to buy a small business without incurring any taxes or penalties? Over the past 20 years, we have helped hundreds of clients do just that using our 401K Business Funding Plan. And our fee has always been 40% lower than what other firms charge. (You will need more than $50,000 in your 401K to qualify.) Learn more now!
*Please contact "401K Business Funding" to confirm the accuracy of any information provided on this page.
401K Business Funding
Business Cost, Fees & Facts for 2024
| Minimum Cash Required | $20,000 | |
| Total Investment | $50,000 - $250,000 |
Available In These States:
We are currently accepting inquiries in ALL States
- Overview
- Testimonials
Overview
401K Business Funding
HOW TO USE YOUR 401K TO BUY A FRANCHISE
Did you know you are allowed to convert your 401K into cash to buy a small business without incurring any taxes or penalties.
Over the past 20 years, we have helped hundreds of clients do just this with our 401K Business Funding Plans.
HOW DOES THIS WORK?
With the adoption of a 401K business funding plan, you are allowed to convert your 401K into privately-held stock in your new business with no taxes or penalties due.
For this tax-deferred transfer, we create a 501A trust and couple it to special “exemption clauses”.
In this way, you would not be “cashing out” your 401K. When you invest these savings into a business, the IRS accepts this as a tax-deferred “rollover,” which allows you to keep the 35% to 40% you would have paid in early-distribution taxes and invest that extra money in the business. It’s pretty much a no brainer.
We have helped hundreds of clients over the past two decades get tax-free access to their 401K, 403B, 457, and IRA funds to buy or startup their own businesses.
This is a great alternative to borrowing money from a bank since you won’t have to pay back any principal or interest payments.
WHY PICK US?
- For starters our fee is 40% lower than other firms.
- Unlike others that require their fee upfront, we don’t charge a dime until after our clients receive all of their money.
- The other firms charge $1,600 or more a year in plan maintenance fees. We don’t charge a dime.
- We have a reputation of helping clients years later at no cost.
MORE CASH TO BUY YOUR FRANCHISE
With the example below, for every $100,000 you rollover from your 401K, you get to keep $41,000 you would have paid in taxes and invest it in your new business.
HERE ARE THE NUMBERS
| COMPARING A "ROLLOVER" TO A "DISTRIBUTION" | CASH OUT YOUR 401K | ROLLOVER INTO A NEW BUSINESS |
|---|---|---|
| Amount in retirement fund: | $ 100,000 | $ 100,000 |
| Mandatory 20% withholding for taxes: | $ 20,000 | $ 0 |
| Cash available to withdraw: | $ 80,000 | $ 100,000 |
| Tax consequences of withdrawal: | ||
| Federal income taxes (at 28%) | $ -28,000 | $ 0 |
| Early distribution penalty (10%) | $ -10,000 | $ 0 |
| State income taxes (2%) | $ 0 | $ 3,000 |
| Total taxes & penalties: | $ 38,000 | $ 3,000 |
| Compare with the cost to set up a 401K Business Funding Plan: | $ 4,950 | |
| Net cash available: | $ 59,000 | $ 95,050 |
| Percent of retirement funds retained: | 59% | 95% |
| Additional cash without taxes & penalties. | $ 54,050 |
HOW TO USE YOUR 401K TO BUY OR START UP YOUR OWN BUSINESS - AND GET A DOWN PAYMENT FOR AN SBA LOAN, IF NEEDED:
How to get an SBA Loan Down Payment
• Last year, the SBA backed 52,000 loans for small businesses.
• The 7A loan can be used to finance any business purpose, including a startup, an acquisition, working capital, salaries, equipment purchases, inventory, and real estate.
• All SBA loans require you to make a down payment ranging from 10% to 30% of the principal. The inability to make a large enough down payment can disqualify you from being approved.
• There are other forms of funding to cover the loan down payment, including tax-free 401K and IRA rollovers.
• If you have socked away savings in a 401K or IRA account, there is a way to use these dormant funds for your SBA Loan down payment.
• For years, SBA lenders required every investor in a new business to have a 20% interest or more to cosign the note. A 401K could not be part of the investment because it could not “encumber itself”.
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Testimonials
Dean, I received my funds today, and I am very excited to begin this new journey. I cannot tell you how much I appreciate the service and professionalism you demonstrated throughout.”Tim Jones
I have been thinking, dreaming, and preparing to have and run my own business since I was a teenager, but today was the first real step towards making it happen. I still don't fully understand all of the steps yet but talking with you and hearing your confidence assured me that everything is going to be fine and you are the right person to get me through this process. Many thanks.Mike Butler
Hello Dean, the exact amount is $205,109.04. Fidelity acknowledged they have all the documents they need to proceed with my tax-free rollover. Again, I want you to know how much I appreciate how you haveRobert Walker
I was a bit skeptical, but after confirming that the money is arriving in my bank account this morning, I am SO PLEASED with your work and due diligence!Enrique Valdez
All is going well for us, and access to our retirement funds has made everything so much easier. Thank you for providing this service! Most people I talk to about the pension trust arrangement are amazed that it is possible and, better yet, pain-free with the support you provide.Linda Moore
You guys are awesome, you are on it!Yes sir, my rollover check just cleared this morning and is available to invest in my new business. I was chatting with my mom and she may be interested in doing the same thing with her 401K.”Charlie Heum