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Retirement Plan Financing

Published By Credit Suite at November 30th, 2015

Retirement Plan Financing

Retirement Plan Financing Could Be Right For Youretirement plan financing Credit Suite2 - Retirement Plan Financing

When you invest in your 401(k) you are investing in other companies. But there’s also a way you can use the same 401(k) to invest in your business. And this is with no penalties! Retirement plan financing could be just the ticket to getting your business funded. And a business with funding is, by definition, far more likely to succeed.

Business owners can borrower against their 401(k)s and IRAs to get funds for their business. With 401(k) financing a business owner can quickly and easily rollover their retirement funds from their previous employer or IRA into the new 401(k) plan.

The funds can come from multiple different sources and multiple people. So this can include a spouse or an employee who is looking for an investment opportunity. And, thanks to provisions in the tax code, you can do this without paying a penalty.

What Are the Benefits of Those Form of Business Financing?

A few of the many benefits of Retirement Financing include:

  • Use funds from retirement accounts like IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc. So, this is without incurring early distribution taxes or penalties
  • Start a small business with minimal to no debt while securing significant tax benefits
  • You can use up to 100% of retirement funds, or use a portion as a down payment on an SBA or unsecured loan
  • Combine retirement funds with the retirement funds of a business partner, spouse, or even an outside investor
  • Save thousands in interest fees and protect personal credit
  • Lower business overhead while aggressively growing retirement accounts
  • Secure rates of 5% or lower.

Retirement Plan Financing vs. Business Credit Building

There is an alternative to retirement plan financing. And that is building business credit.

Small business credit is credit in a business’s name. It doesn’t connect to a business owner’s consumer credit, not even if the owner is a sole proprietor and the only employee of the small business.

Furthermore, with business credit, your IRA or 401(k) aren’t on the line if your business does not succeed. That is not necessarily something that other forms of funding can promise.

Retirement Plan Financing Is a Great Option

Borrowers have access to their own specialist to assist in the safe rollover process. And with retirement plan financing borrowers can secure financing for as much as 100% of the value of the 401(k). So, why not try it?

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