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Using IRA funds for purchase
I am purchasing an existing franchise and want to (actually 'have to') use my IRA for the purchase.
I understand that I must use a Pension Trust to escape the early withdrawal penalty and have seen some companies online who specialize in it.
Any recommendations on companies to use...any new buzz on IRS activity/investigation into this practice?
Thanks for the help...I am supposed to close June 25 so I've got to get moving!
PennyGee
- forums:
401(k) money to buy franchise
Generally a very bad idea (see the Frankman post ) for a lot of reasons. Try calling Mark Weiss and ask him if he can place your deal, he does a lot of franchise funding and will handle beginner franchisees.Janet Sparks of Franchise Times did an article on the various companies that do 401(k) funding. I cant find it on the website, but you could call her office (303-799-7398) and see if they can fax you a copy.
IRA to finance franchise
Pennygee:
Like most things in life, using your IRA or 401K has its Pros and Cons. There are people who are going to tell you:
The truth comes somewhere in between, and many factors should be considered. The concept, your age, your required household budget, the age of your children, etc... Should you or should you not is a question best determined by you based on the advice of a trusted and qualified financial advisor.
If you decide to utilize your IRA, it can be done right, and legally. It does require the assistance and ongoing administration of an expert in the field. I do not want to plug a specific company online here, however feel free to contact me personally and I'll be glad to recomend a couple of companies who we've worked with in the past, with very good results.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
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