The answer is a very qualified yes. However, it’s not as simple as writing a check from your IRA.
This Wall Street Journal article gives some basic guidelines. As the article clearly states, don’t do this on your own.
Call us for professional help.
Article excerpt
“There are ways to use IRA and 401(k) funds to finance your start-up business. But it isn’t simply a choice of writing yourself a check. There are significant legal steps. The key is rolling over the money into a corporate retirement account that permits you to invest in the business.
A nonexpert would likely need the help of a financial planner or third-party retirement-plan administrator. These professionals set up a C corporation and establish a corporate retirement account. A person can then roll outside retirement accounts into the corporate plan and invest the money in the company’s stock. Since the person is buying shares of his or her own business, he or she is effectively feeding it money.”
David Conley
He is also a founding Board Member and Finance Director of the Fayette Pregnancy Resource Center and serves on the Board of the National Equal Rights Institute.
Latest posts by David Conley (see all)
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We destroy another tax myth with facts
- March 20, 2019 - Cliff notes of the new tax law:
Our cheat sheet guide to tax reform
- March 16, 2019 - March madness-tax humor:
Bracket can be in the eye of the beholder
- March 10, 2019
