Is this considered to be a loan?
No. Through the CEO Plan®, the funds in your new 401(k) plan are used to acquire the stock of the new company.
Do I have to use all the funds in my 401(k)?
No. Use as much or as little as you need. The cost to implement the plan is low enough that it makes economic sense even for smaller investments. You simply have to decide how comfortable you feel investing in your own business.
How long does the process take?
Once you're ready to set up your new company, the new plan and rollovers can be complete in as little as two weeks.
Are there hidden expenses to consider?
We've designed the program to be simple and transparent, even in its cost structure. For a one-time, flat fee, you will have all the elements in place, including the formation of your new company for which you would normally incur outside legal fees. The fee also covers the legal and tax advice associated with customizing the plan to suit your individual circumstances and objectives.
What's required to maintain the plan over time?
The new 401(k) plan has to be administered in the same manner as any other 401(k) plan. Standard administration costs cover quarterly statements and annual IRS filings.
What does it cost?
The one-time set up fee is a fraction of the penalties and taxes you would incur to access your qualified funds through a traditional distribution.
I already have a lawyer and accountant. Can they do something similar for me?
The CEO Plan® relies on certain exemptions under ERISA that include a number of technical requirements with which your lawyer or CPA may not be familiar. As with many legal issues, ERISA rules can be complicated. Because we've already invested significant time and research to unravel these complications, you'll reap the efficiencies of a program that already complies with all applicable rules and regulations.
Can I involve my own lawyer, financial planner or other advisors?
Certainly. You and your advisors understand your goals best. We're accustomed to taking a team approach to accomplish those goals. We also respect existing relationships and will make sure your own team of advisors, including your lawyers, will be part of the solution.
Is this a risky tax strategy?
No. Done properly, the CEO Plan® is completely within IRA and ERISA regulations.
How do I get started?
To get started, email Bob at nicholson@carsonboxberger.com.