What is the name of your state (only U.S. law)? Missouri
I currently own a 15 yr old business as a sole proprietor. The economic downturn has put me into a financial crisis. I have pretty much liquidated all of my assets except my home and my IRA. I have researched cashing in my IRA to pay off my debts, however, the penalties are high. In my research I found a website that suggests that I form a corporation, then set up a pension transfer fund to which I will roll my IRA into. The fund then purchases "stock" in the business, and in that way I am able to use the money without paying the penalties or taxes.
My question is - Is this a legitimate way for me to use my IRA money to bail out my business?
Thanks for your help.
I currently own a 15 yr old business as a sole proprietor. The economic downturn has put me into a financial crisis. I have pretty much liquidated all of my assets except my home and my IRA. I have researched cashing in my IRA to pay off my debts, however, the penalties are high. In my research I found a website that suggests that I form a corporation, then set up a pension transfer fund to which I will roll my IRA into. The fund then purchases "stock" in the business, and in that way I am able to use the money without paying the penalties or taxes.
My question is - Is this a legitimate way for me to use my IRA money to bail out my business?
Thanks for your help.