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Pension Transfer Advisors
Our pension professionals have designed a "multiple employer" trust plan, similar to those often adopted by large non-profit associations. The plan combines a 501(a) tax-deferred trust coupled with pro rata, new comparability, and safe harbor 401k features. This unique approach to small business funding unlocks the value stored away in your IRA or 401k, giving you full access to those funds for help financing your business. With The Pension Transfer Trust Plan in place, we have created a tax solution based on an exemption in ERISA law that allows business owners the opportunity to keep 100% of their retirement savings on a tax-deferred basis, with no early distribution penalties.
Facts & figures
How to finance a new business with help from us and your 401k. Since 1974, there has been a way to invest your 401(k) and IRA money into a new business without early distribution penalties and taxes. We take all of the steps to do this in your behalf.
How our trust plan differs from others: While other firms create an individual plan for each client (and the IRS has the right to disqualify any one of them), we provide an established "multi- employer" trust plan that insulates each co-sponsor from the possibility of creating a "prohibited transaction."
Now you can finance your new business with cash from your 401(k) or IRA account...without creating a taxable event.
Do the math: If you have $100,000 in a 401(k) or IRA and take an early distribution (before age 59.5), the following taxable events would be triggered: a 20% mandatory hold-back, Federal (and state) income taxes (at higher tax rates) and a 10% early withdrawal penalty. This could easily be a $45,000 tax bite.
 | Take early distribution | Adopt a pension transfer trust ---|---|--- Amount in retirement fund: | $100,000 | $100,000 Mandatory 20% withholding: | $20,000 | -0- Cash available to withdraw: | $80,000 | $100,000 Less ordinary income taxes (at 33%) | $33,000 | -0- Early distribution penalty (10%) | $10,000 | -0- State income taxes | $2,000 | -0- Total taxes & penalties: | $45,000 | -0- Cost to set up transfer trust: | -0- | $6,850 NET CASH available: | $55,000 | $93,150
It Is A No-Brainer. With a Pension Transfer Trust in place, you can get the down payment for your new business and keep the check to the IRS as a cushion for additional operating money.
How does this work? With the adoption of the Pension Transfer Trust, you are able to convert existing retirement funds into privately held stock in your new business. This tax-deferred 501(a) trust is coupled to a replacement plan that contains special "excemptive clauses." Your new business gets the cash it needs from the sale of a portion of its stock to your trust plan. The trust is unique in that it will provide custodial services to administer non-publicly-traded stock.
How is our trust plan is different from others? Other firms create separate individual plans and the IRS has the right to disqualify any one of them. We provide an established "multiple-employer" trust plan, insulating each co-sponsor from the possibility of having a prohibited transaction. In addition, by marketing individually designed plans, other firms leave the client on their own. With our plan, the Pension Transfer Trust, we are the principal sponsor and trustee, so there are more vested interests in making sure the plan meets current IRS code sections and Department of Labor Letter Rulings.
Hundreds of references available upon request! No other firm can provide you with a list of so many satisfied clients. We knock ourselves out for each and every client and they appreciate it. Ask us for a list of recommendations.
Pension Transfer Advisors include:
- Destel-Bergen Corp:Pension administration fiduciaries
- Transamerica Retirement Services:Custodian
- Friedlander Cherwon & Capper, LLP:Auditor firm
- GCA Law Partners, LLP:ERISA attorneys
- The Maring Law Firm:Trust plan attorneys
- Stevens Certified Public Accountants:CPA firm
- Easton Business Valuations, LLC:Business appraisers
- RGS FINANCIAL SOLUTIONS:Trustee services
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