How To Use Retirement Accounts To Start A Business

Finding the cash to start-up a business can often times be the greatest challenge for new business owners. Most new business owners don’t realize that there are special programs that allow you to use your balance in your 401(k) account or IRA to fund your start-up business without having to pay income taxes or early withdrawal penalties on the distributions. These are called ROBS plans. Rollovers for business start-ups. The strategy involved setting up a new entity, establishing a new 401(k) plan for the company, processing rollovers into your new 401(k) plan, and then your 401(k) plan buys shares of stock in your new company as an investment. This can be a great funding strategy but you have to know the rules and the compliance surrounding this funding strategy. This video will walk you through the pros and cons of the ROBS plan funding strategy.

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