CARTOONS BY CHRIS BRITT
StartUp_Wisdom_online2
StartUp_Wisdom_online2
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– RETIREMENT ACCOUNTS –<br />
If you’re looking for funding, your retirement account could be a source. This includes<br />
your 401(k), 403(b) and traditional IRA. The thought of using your retirement fund<br />
can be a scary one, depending where you fall in your career and how far away your<br />
golden years are. Additionally, with 401(k) and 403(b) distributions, you may incur early<br />
withdrawal penalties and have<br />
some additional tax exposure.<br />
However, there can be a<br />
way to avoid this by using<br />
Rollovers as Business Startups<br />
(ROBS). As defined by the<br />
IRS, ROBS are a way to<br />
optimize the use of money in<br />
your retirement plan account<br />
to start your business. It works<br />
if you have a 401(k) or other<br />
qualified retirement plan<br />
account with a balance that’s<br />
sufficient for your funding<br />
Horse sense is the thing a horse has that<br />
keeps it from betting on people.<br />
needs and you adhere to the tax rules. These funds can be used without triggering any<br />
penalties or creating a taxable event. The process can be complicated, so it is important<br />
to consult your tax adviser or an experienced ROBS specialist that can assist with the<br />
transaction.<br />
HOW DOES IT WORK?<br />
The process for withdrawing funds from your retirement account can vary, but your<br />
financial services company will be able to provide you with the necessary paperwork. To<br />
use the ROBS option, you will need to form a C Corporation and conduct a valuation<br />
to establish a stock price. If you’re a new company, this value equals the initial capital<br />
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