Understanding the basics

Basically, you liquidate your 401(k) or IRA investments, currently at risk in the stock market, into another qualified plan designed to buy stock in your new business. Since you are just transferring funds from one plan to another, you will not be taking a distribution. So there is no taxable event. No taxes are due. Below are the steps we take on your behalf.

Business Funding Trust’s 5 Steps


Set Up Corporation

We set you up with a small, closely-held corporation to run your new business out of. This step sets the stage for a smoother and tax-free transaction that keeps ownership in your hands.


Adopt a Business Funding Trust Plan

Your business then adopts a Business Funding Trust Plan that replaces your existing plan and includes specific clauses that allow for investments in private corporate stock.


Roll Over Funds

Funds are then rolled over from your existing broker into your plan's new bank account. Again, this allows you the most control over your business in the long run, providing a more secure financial future.


Buying Stock

The trust plan buys stock in your corporation with the rollover cash. You’re already building a successful future for your business, without paying any upfront or surprise fees along the way.


Deposit Cash into New Account

Your business deposits the cash received from the plan into its new bank account. There is no taxable event, and those risky retirement plans become your new business plan.

We do all of the work required.

We provide all of the needed components to meet those conditions required by law to invest retirement funds into stock in a private corporation.

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Services we provide each client


401(k) Profit Sharing Plan

Trust EIN Number and Bank Account

An ERISA Surety Bond

$1,500 Federal Tax Credit

Assistance in rollover process

Assistance in setting up trust account

Annual Administration Kit


Business name reservation through Secretary of State’s Office

Charter, By-Laws, Articles, and Resolutions

Corporation EIN number

Corporate Kit – minutes book, seal, stock certificates

Corporate bank account