Does anyone know the rules for using existing 401k money to fund a business?
I have been told If you form a C Corp and roll the money into the company
you can then use the 401k money without paying penalties or taxes.
Yes I do.
There are very specific steps for accomplishing this.
Contact me directly and I'll give you more information.
Using your 401k to finance your business can be one of the best ways to fund your business as I assume you know since you are asking this question. However, I don't think you want to try to do it yourself. One mistake and you will owe taxes and penalties that could drastically effect your plans. I am familiar with Benetrends and they are a company that has been helping people use their 401k funds for years to start a company. I think it would be in your best interest to at least check them out and see if they can help you. I would think the risk of one mistake is too high when dealing with the IRS.
This is not something you should try on your own. Definitely work with an expert like Benetrands or Guidant Financial Group. With Guidant, you are not taking a loan from your IRA or 401k, but investing into your business like you would with stocks of a publicly traded company. If your business makes money, your IRA/401k grows. There is risk involved, but there is also risk with debt financing, and in that scenario you are paying interest too. Here is a good article from USA today about 401k small business financing. There is also a great article on startupnation HERE.
You can invest your 401k funds in any business. There are very simple and basics rules for it. You can also invest in mutual funds, stocks, CDs and gold etc. You can get a better details about it from 401k GPS- the leading investment advisory firm based in USA.
In this situation, it would be best to consider taking help of firms which can help you to provide funds to start up your business. Here is one link of the site: http://allianceonellc.com/, for your reference which can help you to fund up your new business.