The CEO Plan® comes with the counsel of seasoned tax lawyers who can accommodate unusual circumstances and out-of-the ordinary transactions. Depending on your needs, the process may vary, but its simplest form includes these five basic steps.

Step 1

Create your new company

Step 2

Establish a 401(k) plan for the new company

Step 3

Rollover cash from former 401(k) or IRA to new plan

Step 4

Use cash in new 401(k) to purchase shares in your new company

Step 5

New Company uses cash from sale of its shares to purchase assets or business

Exit Strategy

There are a number of exit strategies, depending on whether the CEO Plan is a means to an end or an end in itself. In every case, the value of the business accumulates tax free inside the plan and is realized at the time of sale. The new 401(k) plan can sell the shares in the company avoiding tax on the sale. As an alternative, the new company could sell it's assets and liquidate tax free.