Pension, profit sharing, 401(k), 403(b), other retirement plan and rollover IRA money may be used to fund your own franchise or multi-units, business start-up or business property. This can be done without distributions, taxes, penalties, or the use of loans. Sort of a self-venture-capitalization. These transactions are within the clear letter of the law, we have more than twelve years experience with them.

There are a plethora of rules separating future retirees from the funds held in trust today and awaiting them at retirement. Distributions are taxed as ordinary income -- upwards of 50%. Early distributions, prior to age 59½, add a 10% penalty tax. The Employee Retirement Income Security Act of 1972 (E.R.I.S.A.) has an ironclad "anti-alienation clause," this means that the future pension may not be used as collateral for a loan. If it is so pledged, it is deemed to be a distribution, therefore taxed. There is an exception for "participant loans", but these are limited to lesser of 50% of the vested account balance or $50,000 and must be amortized over 5 years or less with quarterly interest and annual principal payments. Loans may not be rolled into or allowed in an IRA account.

SDCooper Company, using some of the more arcane sections of E.R.I.S.A., has developed a way to legally move money locked in 401(k) or other IRA rollover accounts directly into a new or established business without distributions, taxes, penalties or the use of loans. The money may be used for franchises, property, equipment or working capital. We charge a flat fee for our services and do not sell investments.

ATTENTION, New Tax Law Change: Effective January 1, 2002, you can use IRA money.

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