Do the math
If 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.
| Â |
Take
early distribution |
|
Adopt
a pension
transfer trust |
| 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 (at 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: |
 |
 |
$ 6,850 |
| NET
CASH available: |
$ 55,000 |
vs.
|
$ 93,150 |
It's
a no-brainer
With a Pension Transfer Trust in place, you can get the down payment
for your new franchise and keep the $45,000 check to the IRS as
a cushion for additional operating money.
How does this work?
With the adoption of The Pension Transfer Trust, you are able to
convert existing retirement funds into privately-held stock in your
new business. This tax-deferred 501(a) 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.
What
do I have to do?
We provide all of the components required to insure that every ERISA
and IRS code section applicable to this exemption has been complied
with. So you don't have to find the right professionals, and pay
exorbitant fees for their services, we provide a combination of
financial services in one turn-key package.
For more information
contact Dean Joyner at:
PENSION TRANSFER ADVISORS
San Francisco
415.552.2957
d.pensiontransfers@pacbell.net
|
