DreamSpark business investment plan You’ve put in a lot of time and years into a company, but now it’s time to move on. Part of the process of moving on is considering what to do with your 401k. Generally speaking, you have two options — you can rollover your 401k into a new employer’s plan or a retirement account you’ve established, or you can leave it with the existing company to build. But, what if you used those funds for something else? Perhaps you could even start your own business with it? There are many questions that come to mind when considering that option. Doesn’t Using Retirement Money for Business Mean Big Taxes? IRS laws are very specific about taxation on 401ks. Even when you leave a company, you have a set number of days to ensure your funds get from one qualified account to another. If you fail to do this, you could be assessed taxes plus a 10 percent early withdrawal penalty depending on your age. It may seem, then, that utilizing your 401k funds to start or acquire a business would lead to a taxable event. That’s not necessarily the case. One way around this is to create a corporation and a new retirement plan by rolling the 401k from your previous employer into the new plan. You are then able to invest your rollover as capital in your new business venture. What’s crucial is to work with a firm that understands exactly how to accomplish a rollover and plan investment the right way. The fact is, you can turn your 401k into a sizable investment in a business, and in-turn help you to build significantly more wealth than other publicly traded investment options. The success of the business will determine the return on investment. The plan will also be a tool to continue building wealth through retirement savings for you and your employees. In short, rolling over your 401k into a business investment plan can be more affordable than some other loan vehicles and provides the potential to control the growth of your retirement. There’s no interest to pay and no debt servicing fees. Additionally, when done correctly, there’s no penalty for you to pay and the investment is kept tax deferred. It’s your money waiting to be put to work in a business giving you the ability to control your own destiny. Are you interested in seeing what your options are? Contact the experts at Pango Financial today to learn more about our DreamSpark business investment plan and the way we help streamline the rollover process.]]>