Posts Tagged ‘business finance’

Fund your Business with a Self Directed 401k

Wednesday, January 29th, 2014

Fund Your Business with Self Directed 401k

Have you ever wanted to start your own business but don’t have the funds available to start the business? Maybe you have been laid off and have funds sitting around in your 401k. Now could be the perfect time to start that business you always wanted to start. Why not use the funds in your 401k to start the business? We will be discussing how it is possible to use your retirment account to fund that business you want to start.

How can this be done? The answer is with a Self Directed 401k that we refer to at Accuplan Benefits Services as a Mysop.  With a Mysop you can utilize IRA or 401k funds to help start and fund your new business.  It is a great way to infuse cash into your business rather than trying to get financing.  It can also help in the event that you still need to get financing but the lender is requiring that you have a certain amount of cash in the business in order to do the loan.

How does a Self Directed 401k (Mysop) Work?

  1. Create Entity.  The entity must be a C Corp.  Accuplan Benefits Services will create the entity with the appropriate state.
  2. Create the Plan (Trust with Plan documents). Accuplan Benefits Services will create the Plan and file with the IRS.
  3. Rollover monies from IRA or 401K to your one.K plan.
  4. Setup Checking Accounts for the Company.
  5. Direct Investments by purchasing stock in the C Corp

What are Some of the Benefits of a Self Directed 401k (Mysop)?

  • Allows for retirement cash to be placed into a company without it being a loan.
  • Eliminates many of the prohibited transaction problems when conducting business.   For more information about this see previous blogs about prohibited transactions inside of an IRA.
  • Provides capital for start ups or other cash strapped businesses.
  • Provides for recourse loans when non-recourse loans are not available or practical.
  • You control your retirement plans rather than relying on another person.  You are much more concerned with how your retirement plan performs than any investment advisor.

Below is an Example of How a Self Directed 401k (Mysop) Could Apply to You

Mysop Bed and Breakfast Example

  1. Accuplan creates a C-Corporation.
  2. Accuplan creates your personalized mySOP plan and your C-Corp adopts the plan.  A 401(k)  is also established for later contributions.
  3. Bob and Carol roll over some of their IRA monies into the mySOP.
  4. Bob and Carol, acting as Manager and Trustee, set up bank accounts for the C-Corp and the 401(k).
  5. Bob and Carol, acting as Trustee of the mySOP (Self Directed 401k), purchase shares of the C-Corp which will be the bed & breakfast.
  6. The C-Corp now purchases the bed & breakfast from the current owners for $500K.

If you have any questions or would like more information about how you can use your retirement funds to start a business please contact us at Accuplan Benefits Services. You can contact me with my information below.

Author: , Self Directed IRA Professional
[email protected]


Thursday, January 9th, 2014

You don’t have to start your resolution on January 1st, but you should start your resolution with the intent of following thorough.  According to, 34% of people make money related resolutions.  How many times have you thought about taking control of your financial future?  About having more money in your retirement?  Well, the beginning of the year is the time to make these thoughts into realities.  The stock market ended on a very strong note and as all financial advisors will tell you, its best to sell high.  This may be the best time to sell those traditional assets like stocks and bonds to invest in something that has the potential to make more money than stocks and bonds can offer.

What are the benefits?

*”Self-Directed” means you have complete control over selecting and directing your investments.  We even offer accounts that give you checkbook control.

*Diversification– Instead of “putting all your eggs in one basket” on Wall Street, a self-directed account offers a plethora of investment options.

*Market Volatility – We have seen the market on Wall Street do dips and drops and downward strides several times this year.  A self-directed account offers many investment options that have much less market volatility.

*Due diligence – As with an investment you should do your due diligence by researching your investment.  Since self-directing offers so many investment options you can research and invest in what you know and enjoy!

*Tax deferred – profits are tax deferred in your retirement account.  When investing in real estate, no 1031 exchanges are ever needed.

*Plus more

Investment options

—  Real Estate

  • Commercial
  • Residential
  • Multi-family
  • Multi-unit
  • Apartment buildings
  • Co-ops
  • Condos
  • Land – Improved or Unimproved
  • Multi-Tenant Shopping Space
  • Anchored Shopping Center
  • And more!

—  Hard money lending

—  Precious Metals

  • Gold
  • Silver
  • Platinum
  • Bullion coins

—  Private placements or offerings

  • Oil & gas
  • Real estate
  • Ownership interests in privately held businesses and business entities, etc.

—  Trust Deeds

—  Tax Liens

—  Funding a Start-Up Business

And Many Others!

What type of money can be used?

You can roll several types of accounts into a self-directed IRA.

  • Most type of retirement accounts:
    • 401(k)
    • 403(b)
    • Profit Sharing Plans
    • Keogh
    • Qualified Annuities
    • Money Purchase Plans
    • Cash Balance Pension Plans
    • Defined Benefit Pension Plans.
    • IRA accounts:
      • Traditional IRA
      • SIMPLE IRA
      • Roth IRA
      • SEP-IRA
      • Inherited IRAs
      • Plus more, like Coverdale Education Savings

How to get started?

The process is simple.  Visit our website to learn about the self-directed world.  You can watch videos, read brochures, learn about the different types of accounts and investments available when self-directing.  While you are on our website, you can chat with one of our IRA Specialist.  Or, you can give me a call directly so we can discuss your investment goals and decide which self-directed account best fits your situation.

HAPPY NEW YEAR!  And congratulations on starting this year by taking control of your financial future!


Jaclyn M. Grella