Use your 401k or IRA Tax & Penalty Free

Buy a business or Franchise with your retirement savings -- Tax and Penalty free!

Considering the cost of borrowing money at today's rates using a 401k to buy a business could literally save you hundreds of thousands of dollars.  Eliminating the cost of interest by using a 401k as an equity investment would also free up monthly cash flow and improve the likely hood of business success.  See below comparisons. 

Learn how the funds from your current employer can help you start your own Business or Franchise.  Tax Free use of 401k proceeds can now be used to finance a business, corporation or franchise opportunity.  

No Penalties!

For most Americans their 401k represents a large portion of their net worth.  What many don't realize is they can use these funds to acquire or purchase a business even before the turn 59.5 without the penalties.  While SBA funding and other bank loans may be in consideration one should consider their options and weigh the closing cost involved.  Sometimes using your own savings makes perfect sense.

Get cash out of your 401(k) or IRA to help finance your new business, without creating a taxable event.

Say 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 Self Directed
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 (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   $5,000 estimated
NET CASH available $55,000 $95,000

With the adoption of a Self Directed Retirement Plan, you are able to convert existing retirement funds into privately-held stock in your new business. This tax-deferred trust is coupled to a replacement plan that contains special "exemptive 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.

Sally Null works with several legal advisors to implement the usage of 401k tax programs.  Note: I am not licensed to make these transactions but I can help you find the right specialist.

Sally Null - Tampa Bay Business Broker

I’m a proud member of Business Brokers of Florida and a licensed Florida Real Estate Agent. These relationships guarantee my Tampa Bay buyer’s immediate access to hundreds of the newest Tampa Bay business listings on the market each day while also providing my Tampa Bay business seller’s exposure to a huge network of buyers from across the state, country, and globe.


I am a committed and passionate Tampa Bay Business Broker who prides myself on putting my customer’s priorities above all else. My determination and attention to detail allows my customers to receive first class service with utmost integrity.


Please call or email me today to discuss how I can best serve your Tampa Bay Business Purchase or Sale needs!


Sally Null

Business Broker


400 Carillon Parkway, #110

St. Petersburg, FL 33716

Cell - 813.786.5946