Get Started With 401k Financing
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401(k) Financing How to Use Your 401(k) To Get Up to 100% in ‘Rollable’ 401(k) Financing for a New or Existing Business
(Flexible, Reliable Solution for Business Funding)
401(k) financing offers a powerful and flexible way for new or existing businesses and franchises to leverage assets that are currently in a 401(k) plan or IRA.
In as little as 2 weeks you can invest a portion of your retirement funds into your business, giving you more control over the performance of your retirement plan assets and the working capital you need for business growth.
Fast Facts on Credit Suite 401(k) Financing
Approval Amount
100% of whatever is “rollable”
Bad Credit
ACCEPTED
Collateral
401k/IRA
Documents
Provide a copy of your two most recent 401(k) statements
Why You Need 401(k) Financing
How Does It Work?
4-Step Process
Step
Step 1
Complete the form for a one on one consultation with a representative
Step
Step 2
Submit your application. Soft pull on your credit
Step
Step 3
Get pre-qualified in as little as 24 hours with initial approval and funding in 3 weeks or less
Step
Step 4
Meet directly with 401(k) Financing Advisors and get access to your Credit Lines
If you are NOT approved, you’ll find out why, as well as what you can do to get approved
How to Qualify for Funding With 401(k) Financing
Below are the requirements to qualify for 401(k) Financing with Credit Suite:
Provide a copy of your two most recent 401(k) statements
401(k) must have a value of more than $35,000
Cannot currently be contributing to 401(k)
Cannot currently be employed by the firm where the 401(k) is with
Fundability Factors Needed for Qualification
Foundation
Financials
See what you qualify for today
Terms
In many cases, you can secure a low interest credit line or loan for 100% of your current 401(k) value
How Much Does It Cost?
Pay a $4995 lender fee, which includes 5 years’ worth of management and consulting. If you don't get approved – you don't pay.
Multiple Finance Options All In One Place
Wondering if 401(k) Financing is right for you? Find out now, and if it isn't the best fit, we have many other options with easier qualifications and better terms. Find out how much you qualify for in 401(k) Financing today with our Business Finance Blueprint Qualifier and let our team help you find the best option for your situation.
FAQ
A 401(k) is a retirement savings and investing plan that employers offer. A 401(k) plan gives employees a tax break on money they contribute. Contributions are automatically withdrawn from employee paychecks and invested in funds of the employee’s choosing (from a list of available offerings). 401(k)s have an annual contribution limit of $19,500 in 2021 and $20,500 for 2022 ($26,000 in 2021 and $27,000 in 2022 for those age 50 or older)
A Roth 401(k) is a type of 401(k) that allows you to make after-tax contributions and then get tax-free withdrawals when you retire. While traditional 401(k)s allow pre-tax contributions and the withdrawals in retirement are taxable.
401(k) plans typically allow users to borrow up to half their retirement account balance for a maximum of five years. The current limit is $50,000.
Pros are that 401(k) loans are cheaper than credit cards, and you pay interest to your own account. There’s no impact on your credit score. But cons are your retirement savings are on the line, sometimes a significant portion of it. Plus, the risks include tax consequences and penalties.
A Rollover as Business Startups is the IRS’s own program to allow business owners to invest their retirement assets in their own companies.
In a ROBS transaction, funds from eligible retirement accounts, including a 401(k) or a traditional individual retirement account, are rolled over in most cases with the help of an attorney or a ROBS provider and invested in a new business or franchise, or used to buy or put money into an existing business.A ROBS transaction works as follows. First, a C corporation — a corporate structure that allows shareholders — is formed. Then a new 401(k) plan is created for the business. The owner’s existing retirement accounts are rolled into the new 401(k) plan. Most retirement accounts will qualify. The rolled-over funds are used to purchase company stock in the C corporation. The proceeds from the sale of stock is the cash invested in the business.
Rollovers as Business Startups is an option for an entrepreneur who has built up retirement savings but who may not otherwise qualify for a business loan.
You do not take on debt. A ROBS isn’t a loan. You won’t pay penalties or taxes. Normally, if you withdraw funds directly from a 401(k) or IRA before turning 59½, you'll be hit with a 10% early withdrawal penalty and face a distribution tax. You avoid those with a ROBS.
The biggest drawback is, if your business fails, your retirement money will be gone.
You will also lose out on retirement savings gains. Since you are committing your retirement funds to finance a business, you lose the potential gains from a rising stock market, the tax-deferred savings of 401(k) and IRAs, and the power of compounding as investments grow over time.
Furthermore, you must operate as a C corporation. Since the tax implications differ from a sole proprietorship and a limited liability company, it may not be a good fit for your business.
You will also pay fees, and they cannot be paid using the proceeds of the transaction
Yes! It’s their plan.
You can borrow up to $50,000 from your retirement account penalty-free to start a new business
Nope!
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