Can I really use my retirement funds to open a business without taxes or penalty?
In most cases, yes. Our plans are designed to meet the IRS requirements for qualified retirement plans. IRS regulations permit the rollover of funds from qualified plans to qualified plans without taxes or penalties. Regulations also permit investment of retirement funds in the stock of the sponsoring company. The benefits of the Rainmaker Plan® do come with responsibility. It's imperative that a qualified retirement plan be established for the new company, and that it be used and operated as such. It's also required that this qualified retirement plan be made available to all eligible company employees. Because compliance is essential, it’s important to work with a company that specializes in retirement plan design and administration, to ensure compliance at set-up, and continued compliance year after year.
How can I be sure it's okay?
Benetrends has decades of experience in designing retirement plans to comply with the Employee Retirement Income Security Act (ERISA) of 1974, as well as Internal Revenue Code provisions. In fact, the Rainmaker Plan® was designed by an ERISA attorney — the founder of Benetrends. We feel so confident about the design of our plans that Benetrends stands behind the Rainmaker Plan® with the industry’s best written guarantee for plan design, and we provide this guarantee up-front to each and every one of our clients. For more information, ask a Benetrends retirement planning professional for details regarding the Rainmaker Guarantee.
My accountant (or lawyer) wasn’t familiar with this type of plan or sure if it could be done. Why is that?
Retirement planning is a highly specialized field. For this reason, we recommend that you use a firm like Benetrends, which deals only with retirement and pension fund planning and administration when dealing with your retirement or pension funds. While your accountant or attorney may not be familiar with this type of plan, we’ll be happy to walk through the process with them.
What if I have more than one retirement savings account?
Not a problem. You can consolidate all of your retirement accounts in the new retirement plan.
Can I roll over my 401(k) plan from my current employer?
Generally, no. You must have either terminated or be about to terminate your employment.
Are there any types of retirement plans that can’t be used?
Only a few: Roth IRAs, distribution of death benefits from an IRA other than to the spouse, and 457 plans for non-governmental agencies. If you're unsure if your plan qualifies, call or email us at info@benetrends.com.
How does this work? What's the process?
The process begins with a rollover of your current qualified retirement plan funds into a qualified retirement plan that’s created for your new C-corporation. As part of our process, we’ll complete the paperwork for the set-up of this new corporation and the establishment of the retirement plan.
Next, you direct a portion of those rollover funds to be invested in stock in your new business. At that time, you can choose to diversify your portfolio by purchasing stock in other businesses, buying bonds, investing in mutual funds, or many other options. You may use your own financial advisor or broker for this portfolio diversification, or you can enlist the services of one of Benetrends’ nationally recognized investment partner firms.
Next, the funds from the purchase of stock, by the retirement plan, are released, providing cash for any legitimate business expenses such as salaries, furniture, fixtures, and working capital.
Next, a contribution plan is established for your retirement fund. The nature of these contributions depends on the plan design. It’s critical that you continue to utilize this qualified plan to save for your future — and planned contributions are the key to long-term savings. At the same time, your company’s employees may utilize this plan to save for their futures. Finally, based upon the wealth you’ve built in the plan, your retirement funds become part of your exit strategy, allowing you to enjoy a secure future.
This sounds like a long and complicated process. Is it?
Because Benetrends is the original designer of the Rainmaker Plan® for self-reliant business funding, we’ve developed a plan design and a set of systematic procedures that make this process simple and turn-key for our clients. Our staff of professionals is dedicated solely to retirement planning and administration, and they’re committed to the delight of our clients. In fact, many of our clients have access to their funds in as little as two weeks. And because we provide ongoing plan administration, we’ll also ensure that your plan remains compliant.
Do you make a commission on the investment?
No, we charge a very reasonable flat fee to set up your corporation and your retirement plan, regardless of the size of your investment, or the size of the company you're establishing.
