If you have a 401k or IRA from a previous employer and are under the age of 65 you are eligible for a tax-free rollover and will not be charged with taking a distribution (which could cost you from 35% to 41% in taxes).
If you have a retirement plan with where you are still employed but plan on leaving your job, we can start the 2-3 week process now.
If you have a self-directed IRA, you are eligible even if still employed.
*Note: Generally we’d like you to have at least $100,000 in your existing plan to justify our fee.
Retirement plans available to rollover: All IRAs, Sep, Simple, inherited plans, 401(k) plans or 403(b) and 457 plans, annuities, profit sharing plans, defined benefit plans, and a long list of others.
1st: We set each client up with a small, closely-held C-corporation in the state where they plan on operating their new business.
2nd: The new entity then adopts a 401K profit-sharing plan that is designed to allow investing in small, private companies.
3rd: The existing brokerage firm mails the rollover check made out to the client’s new 401k plan and it is sent directly to the client’s home address.
4th:The check is then deposited into the client’s new 401k plan bank account which has its own EIN number.
5th: The plan buys stock in the client’s new business with these funds.
6th: The tax-free rollover funds in the plan’s bank account are transferred over into the company’s bank account in exchange for the stock.
All of the applications, forms, and resolutions are processed by our staff on each client’s behalf, taking 23 administrative steps in compliance with applicable IRS Code Sections and DOL Letter Rulings.
There are a few other firms out there that offer a similar service to ours. We all charge a fee of $4,950. But the way our program is set up, there is a $1,500 Federal tax credit available that, on a post-tax basis, reduces our fee down to only $3,450.
And it’s also important to know other firms charge a plan maintenance fee of $1,200 each year. So within the first 5 years of their plans, clients will pay an extra $6,000 for their rollovers.
Our fee comes out to about 3% on $150,000. If you took a distribution you could easily owe over $60,000 in taxes depending on your age and tax bracket.
We go through over 20 steps on behalf of each client to complete this tax-free rollover process. It takes us 2-3 weeks of work to complete. We will send you a list of these steps as part of our process.
The rollover can be completed in as few as 2 to 3 weeks depending on how fast the client wants to move.
(YOU): The only risk is that the business you buy (or startup) doesn’t make it. Then you will lose your savings.
(US): There is no risk you would be taking with us since your funds are transferred directly from your custodian (Fidelity, TD Ameritrade, Charles Schwab, etc.) to your bank account. We never see or touch your money. And you don‘t pay us a dime until after you receive 100 %
of your rollover.
(TAX RISK): There is no risk of being charged an income tax on your rollover since you are not “taking a distribution”. This process has been a part of Federal codified law since the ERISA Act was passed by Congress in 1974.
Our fee is 40% lower than others because we don't charge any annual maintenance fees. Other firms bill their clients $1,200 or more every year!
And unlike the others, we don’t charge our fee upfront. I guess they don't trust their clients to pay them. Because of this, our clients pay their fee out of their new business bank account, not their personal bank account.
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