FAQ’s

Rollover For Business is not a new program, as a matter of fact, it’s a business tool that’s been around for years, but most financial professionals such as a stock broker may not have heard about this financing option primarily because there is not enough profit within the program to benefit their organizations.

Yes, indeed. As a matter of fact, you’ll be an employee of the business, and all you have to do is provide is a legitimate service. You have the option of receiving income from the business, and it’s required so it’s a win-win. Your compensation wouldn’t be derived from your employee stock options but would be generated from the business revenues after it begins operations.

You have the option to purchase any new or existing franchise. The only requirement is that you purchase a business identified as “solely the investment of capital.” For instance, a business transaction where you’d loan the retirement capital to fund the start-up of the business.

No, it does not. According to the Employee Retirement Security Act of 1974, known as (ERISA) that passed the option to invest retirement funds was passed from the employer to the employee.

The C Corporation (C Corp.) is the premiere corporate entity used by the BS&S RFB program, which also satisfies the requirements of the ERISA and the Internal Revenue Service.

A tax that becomes effective when dividends are paid by the C Corp. can be avoided or mitigated altogether. A tax professional could explain and help with this tax strategy. Finally, paying taxes when receiving a distribution from your retirement account cannot legally be avoided completely.

The RFB Plan has to be offered to all employees that the minimum program requirements.

$18,000 is the most that you may contribute to your 401k Plan during the 2016 tax year. For contributors, 50 years of age or older may also provide a “catch-up contribution” of an additional amount of up to $6,000.

Yes, an exception to “prohibited transactions” allows friends or family members to participate.

Sure, the RFB Plan allows you to receive funds from family or friends to raise the capital needed for the start-up or venture.

With a new franchise start-up or business purchase of an established venture that is an arm’s length transaction, an appraisal is normally not a requirement. However, when investing in a new or existing business or franchise, it is prudent to request an appraisal, regardless of whether retirement funds are used or not. And if you are RFB funds to re-invest in a business that you currently own, then an appraisal would be needed.