Need Additional Business Financing or Plan on Investing More Money into the Corporation?
- There are a number of traditional and non-traditional business financing options that may be available to you if your corporation and business needs additional capital, please contact us for assistance.
- If you need additional 401(k) monies invested in the company or if you intend to bring additional investors into the company and/or intend to invest more monies into the Company, additional requirements are necessary that are specific to the Qualified Employer Securities (QES) strategy you engaged in.
- One of the key legal requirements related to engaging in a QES transaction is that the stock purchased by the 401(k) Plan, in both the initial and any and all subsequent stock purchases must be purchased for “adequate consideration” as defined, in part by ERISA § 408(e)(1).
- You can invest additional funds into the company; however, it is important that you contact Leading Retirement Solutions prior to investing any additional funds into the company so that we can provide you with information about additional requirements.
Tax Sheltering with Your 401(k) Plan: There are a few possible ways to utilize tax breaks for business owners with a retirement plan. Some of these include:
- Tax credits for retirement plan startup costs.
- Retirement savings contributions credit.
- Through employer contributions to reduce a company’s taxable revenue.
- Company owners can reduce their own taxable income through contributions into their Plan.
- Roth contributions made to a 401(k) or 403(b) Plan result in tax free earnings.
- Once your company approaches profitability, let us know so we can talk tax strategy with you.
- For more information on this topic please visit: Great Retirement Plan Tax Breaks
If you are interested in discussing these topics with a Leading Retirement Solutions team member, please contact us at: