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Convert Business Accounts Receivable into Personal 401(k) Tax Free Income
Did you know there is a way to convert your business Accounts Receivable received from selling tangible personal products into your 401(k) as an investment while reducing your business taxes and receiving tax-free income all at the same time? This is a little-known tax strategy that is permitted by the pension rules but not promoted by banks, insurance companies, or investment firms. (Why don't banks, insurance companies or investment firms promote this? Because there is no product for them to sell and earn commission from.)
Who Can Set Up Invoice Factoring?
What Are The Benefits?
The main benefits from establishing this plan are:
Fast 401(K) Asset Accumulation That Will Either Be Tax Deferred Or Even Tax-Free Income
The program can be structured so the income that is accumulated will be tax-deferred - or it may even be structured to be tax-free upon retirement.
You have the ability to achieve an extremely fast build-up of assets and income in your 401(k)-retirement plan as well as reducing your business taxable income while converting that business income into tax-free retirement income.
This is the best of both worlds, reducing business taxes, increasing retirement income, and saving taxes on retirement distributions all at the same time from doing virtually the same thing that you’re doing right now, collecting customer accounts receivable.
Internal Invoice Factoring Investment Plan
This plan requires that the 401(k) be established for a period of five years prior to taking out withdrawals from the pension plan at 59 ½ years of age for tax-free treatment. These plans have specific rules and requirements specified by the Department of Labor for both establishment and set up and its operations, therefore it is important to have someone knowledgeable about them for guidance, help, establishment, and operations of the plan.
Contact us for further information on this tax saving process and for our FREE – Pre-Qualifying Checklist to see if would work in your business.
Ken Lindow, CPA
Ken Lindow, CPA and a former top Inc.500 CFO specializes in tax structuring of real estate investments, ROBS 401k plans for business investing and 401(k) self-directed tax plans for investment planning, as will and business strategy planning for new ventures and fast business growth.