401k and IRA Business Loans
What Experts Are Saying About Using 401k and IRA Business Loans to Fund Your Business
Many experts agree that using your 401k or your IRA to fund your business offers four primary benefits.
Cash out 401k to Start a Business
Imagine using your 401k or IRA to invest in your dream business and doing it without taking on debt. Many business owners use their retirement saving account to start a business.
Why It’s Easier to Succeed With 401k And IRA Business Loans Than You Might Think
Imagine a fast funding option that allows you to purchase a small business or franchise without taking a loan or having a taxable distribution.
How would you like accessing your funds in your 401k or IRA and doing it without an IRS tax or penalty?
Would you like the expert guidance to help you navigate this excellent funding option?
An Introduction to 401k And IRA Business Loans
Your hard-earned tax-deferred savings offers:
401k and IRA Business Loans Are Fast Track to Profitability
#1. If you are like most business owners, you do not have the luxury of starting your business debt free.
When you start your business debt free, right off the bat, you have lower overhead than most of your competitors. Having little to no debt puts you in a very enviable position.
The major benefit is starting a business without a drag on your cash flow. By having one less major expense means you can start to make money sooner and faster. Think about it. You are not making monthly payments to service a loan.
Since you don’t have that regular interest payment on a business loan, it also allows for a less risky financing option versus the standard home equity loan. That’s assuming you have equity in your house.
NOTE: The risk of most debt options is a double-edged sword. If your business fails, you no longer have the income or opportunity PLUS you still owe the money to the lender. If it’s a home equity loan, you stand the risk of losing you home.
If you use your retirement savings, you have that same double edge sword.
#2. You Have Tax Deferred Savings
When you make the decision to use your 401k or IRA as a funding vehicle, it means using these funds does not create a taxable distribution. The net result is you can save more for retirement.
#3. Investing with Confidence
When you invest in your business, you are essentially investing in you.
There are a plethora of choices for investment opportunities. You can invest in stocks and bonds. You have real estate, gold, and silver. There are the commodity markets and the Forex.
By choosing to invest in your business, you are choosing “YOU” as the best opportunity. We would agree that your business is an investment that you can control better than any other investment like stocks, real estate, etc.
#4. Sleep Better at Night
Having peace of mind is crucial. Using the Employee Retirement Income Security Act passes in 1974 allows you to use this quick and legal funding option.
How it Works – The Very Basics
1. Create a C-Corp
2. Create a New Qualified Retirement Plan
3. Start the Bank Rollover Process
4. Receive the Funding for Your Business
We do not recommend using your retirement saving without expert advice. There are multiple legal steps to insure you comply with the law.
We also caution you and remind you that most businesses fail. Doing so means losing your business and retirement savings.
We highly recommend reading the IRS’s “Rollovers as Business Start-Ups Compliance Project,” commonly referred to as ROBS.
Robs will also give you:
- IRS ROBS 401k Prohibitive Transactions.
- ROBS Business Financing
- ROBS Exit Strategy
- ROBS 401k Real Estate
- ROBS CPA