Florida999
Junior Member
What is the name of your state (only U.S. law)? Florida
Getting Financing or capital to purchase a small business is a real challenge. It seems that the odds are stacked against those of us who want to pursue our dream, as well as fuel the economic engine for growth and employment in the process.
I ran across the company that promises to do the following:
1. They will form a new business entity, a corporation, on my behalf.
2. They will then creates a 401(k) plan for the new business.
3. They will facilitates rolling up to 100% of my retirement funds from my existing account into the new 401(k) plan, without taking a taxable distribution.
4. Once the money is transferred to the new 401(k) plan, that plan will then make an investment into the corporation.
5. The corporation then purchases the business of its choice.
My Questions:
1. This sounds too simple. Am I just a skeptic or can this be done without paying a potentially hefty fee to this company for this service?
2. Is this something that is really ERISA compliant?
3. If the new 401(k) plan "invests" in the purchase of the new company, how does the plan recoup this investment down the road?
4. Besides the obvious risk of losing the entire investment what are some of the pros, cons or alternatives?
5. Assuming this is legal, what would be a reasonable fee for this type of service in Florida?What is the name of your state (only U.S. law)?
Getting Financing or capital to purchase a small business is a real challenge. It seems that the odds are stacked against those of us who want to pursue our dream, as well as fuel the economic engine for growth and employment in the process.
I ran across the company that promises to do the following:
1. They will form a new business entity, a corporation, on my behalf.
2. They will then creates a 401(k) plan for the new business.
3. They will facilitates rolling up to 100% of my retirement funds from my existing account into the new 401(k) plan, without taking a taxable distribution.
4. Once the money is transferred to the new 401(k) plan, that plan will then make an investment into the corporation.
5. The corporation then purchases the business of its choice.
My Questions:
1. This sounds too simple. Am I just a skeptic or can this be done without paying a potentially hefty fee to this company for this service?
2. Is this something that is really ERISA compliant?
3. If the new 401(k) plan "invests" in the purchase of the new company, how does the plan recoup this investment down the road?
4. Besides the obvious risk of losing the entire investment what are some of the pros, cons or alternatives?
5. Assuming this is legal, what would be a reasonable fee for this type of service in Florida?What is the name of your state (only U.S. law)?