4 ms·
Not necessarily. You can roll over an existing 401k into your startup without taxes and penalty: http://en.wikipedia.org/wiki/Rollovers_as_Business_Start-Ups
by lsllc 14y ago
Not necessarily. You can roll over an existing 401k into your startup without taxes and penalty:
http://en.wikipedia.org/wiki/Rollovers_as_Business_Start-Ups http://en.wikipedia.org/wiki/Rollovers_as_Business_Start-Ups
This is how many people buy those Dunkin' Donuts or McDonald's franchises.
As for it being a good idea ... do you really think your 401k in mutual funds is going to give you a comfortable retirement? After your hard earned 401k savings are pillaged & plundered by the likes of GS and their HF algo's, Ben Bernanke & friends have printed so much money that your retirement fund will barely buy a new car when you retire and Congress has frittered your Social Security away on endless war ... this doesn't seem like such a bad idea!
- zavulon 14y agoGoddamn, I wish I knew about this 3 years ago when I did the exact same thing as the OP. I ended up paying the penalty and everything. Although now, three years later we are profitable[1], have 15 employees and never taken a cent from outside investors. So no regrets here. [1] I should mention that we're a business, not a startup by PG's definition, and were bringing in revenue from day 1.
- Evbn 14y agoHave you asked your accountant about amending to tax filings?
- Evbn 14y agoWow, that is an awful article, but good to know about the concept. This is even more direct than the practice of forming a real estate investment trust for he purpose of putting IRA funds into a rental property.