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Home > Tools and Resources > Ask the Expert > Using 401k or IRA to Buy a Business

Using 401k or IRA to Buy a Business

By Richard Parker | Diomo Corporation
Contact Richard Parker | Visit Website | About The Author

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Question:
Can a person use 401k assets or IRA self-directed assets to purchase a business, without tax implications?

Answer:
There are a number of programs available now that offer this type of scenario. Personally, I have not used this route but if the programs work as fluidly as they are presented to be, this can be a tremendous option. While you absolutely must have your attorney and accountant review any such deal, you may want to check out:

http://http://www.bizquest.com/resource/benetrends.asp?source=BizQuest

Apparently and allegedly the tax code allows you to transfer money out of a qualified retirement plan to purchase stock in your own business. Since no "rollover" takes place, there is no taxable event. Once again, I must stress that you have this verified by a professional.

Get more expert advice in Richard Parker's How To Buy A Good Business At A Great Price - the most widely used reference resource and strategy guide for buying a business.

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About The Author
Richard Parker is the author of: How To Buy A Good Business At A Great Price, the most widely used reference resource and strategy guide for buying a business. He has purchased ten businesses in his career and has helped thousands of prospective buyers worldwide learn how to buy the right business for sale. He is also founder and President of Diomo Corporation - The Business Buyer Resource Center.

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