Use your IRA Rollover or 401(k) to buy or start a franchise or independent business.  Roll over your retirement plan balances into an Eligible Individual Account Plan (EIAP) with Tenet Financial Group without incurring taxes or penalties.  Use your EIAP for the equity injection required for your SBA Loan or make your investment without incurring any debt at all.  Tenet Financial Group has been a trusted advisor and consultant to America’s small businesses for over 20 years.

How it works:

To understand how you can finance your new franchise or independent business by creating an Eligible Individual Account Plan, you must understand two bodies of law.  The two bodies of law that govern this type of 401(k) structure are the:

Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code of 1986 (IRC).

For purposes of an Eligible Individual Account Plan (EIAP) structure, these two bodies of law cover who is eligible and what you can or can not do in a qualified plan, as well as what is deductible going into the plan and how money is taxed when it is taken out of the plan.

The graphic below depicts how assets move within an EIAP.

Fees for an Eligible Individual Account Plan:

At Tenet Financial Group, we charge a one-time flat fee of $4,700 to design and install a new Self-Directed 401(k) Plan & Trust. 

We deliver the following services for our fee:

• If you currently do not have a C-Corporation established, we will incorporate your new company with the Secretary of State in the state where you plan to start your new franchise or independent business.  If you currently have a LLC or an S-Corp, please speak with a Tenet Financial Group Senior Consultant for directions on how to dissolve your LLC or S-Corp and change to a C-Corp.
• Obtain a Federal Taxpayer Identification Number (EIN) for your new C corporation.
• Prepare your C-corp. bylaws, organizational minutes, resolutions to open a bank account (to obtain a loan, necessary) corporate records book, corporate seal, stock certificates, and stock ledger, and forward them to you.
• Instruct you how to use your new corporate charter, authorizing resolution, and corporate EIN to open a corporate checking account.
• Complete all of the above steps within two business days if your state of incorporation offers electronic filing.
• Prepare the adoption documents for your new 401(k) Plan & Trust.  This can be completed within three business days.
• Overnight the corporation and the 401(k) Plan & Trust signature pages to you for your signature. 
• Obtain an EIN for your new 401(k) Plan & Trust.
• Have a CPA review all of your corporation and 401(k) documents with you in a conference call setting.  During this call the Tenet Financial Group will help you customize the adoption documents for your new 401(k) Plan & Trust to suit your particular needs.  We will also review the summary plan description, plan enrollment forms, and beneficiary designation forms with you.
• Instruct you how to use your new plan documents, corporate resolutions, and 401(k) Plan and Trust EIN to open a trust checking account.
• It typically takes no more than five business days from the time we overnight the corporation and the 401(k) Plan & Trust signature pages to you to this point (10 business days total since our initial engagement).
• Submit your new qualified plan to the IRS for a favorable determination letter.  A one time fee of $300, payable to the U.S. Treasury Service, is required.
• Help you in the preparation of any forms to secure the "direct rollover" of your retirement assets into your new trust checking account.
• After your money has rolled into your new Self-Directed 401(k) account, we will help you determine the price per share for your new corporation, and assist with the stock transaction that will fund your new corporation.
• You, as trustee, will transfer money from the trust checking account to the corporate checking account.  Your new corporation will then issue shares of its stock to your new 401(k) Plan & Trust.
• The corporation will now have cash in the bank and no debt.  Your debt-free, cash-rich corporation will be very attractive to prospective lenders should you need additional financing.  You can now invest in your new franchise or independent business.

Annually:

The plan will require administration, trust accounting, and federal reporting every year.

Our annual fee for this service is $1440.  For this annual fee we provide the following services each year:

• Preparation of Form 5500 Annual Return/Report of Employee Benefit Plan to be filed with the IRS
•  Preparation of the Summary Annual Report
• Preparation of participant statements
• Review for compliance
• Estimation of the annual tax deductible contributions that you can make to your Eligible Individual Account Plan 

We are also available to assist you with questions you may have throughout the year as it pertains to employees and their status, eligibility, vesting, and other operational issues that may arise from time to time.

We can also assist you with year-end tax planning and options available to you as a result of this structure.