A BORSA™ plan is a self-directed 401(k) plan that allows you to infuse equity from your existing retirement plan(s). This equity can be invested in qualifying employer securities (stock) in your company.
Once invested in the corporation, these funds can be used for the purchase of an existing business, start-up, franchise, or as working capital to pay normal corporate operating expenses WITHOUT being deemed a distribution subject to tax and/or penalties.
With a BORSATM plan you can:
• Roll over your retirement plan balance into a BORSA™ without tax or penalties.
• Use your IRA rollover and/or 401(k) plan savings to buy, start or fund your business.
• Use your BORSA for the equity injection required for your Small Business Administration (SBA) loan.
• Save 50% or more of your retirement/investment from being eroded by state and federal tax authorities and put it to use.
DRDA's personnel have lectured on the ERISA and Internal Revenue Code Sections that govern the use of 401(k)s to finance the purchase or start up of a business, or to purchase assets for your current business. We have taught courses on compliance with this structure through NAGGL, Coleman Publishing, SCORE, and others. We provide the SBA lender the documentation required to be compliant with any post-close reviews by the SBA.
Just think, how else could you finance your business this safely? You are utilizing your own retirement savings - what better way to fund or start your small business or fund purchases for your business? Invest in your own business instead of someone else’s! When you are able to make more money from your business, it enables you to be able to put more away for your retirement.
DRDA is a CPA firm focused on small and middle market businesses. DRDA has been a trusted advisor and consultant for over 25 years. Our firm has been ranked by the Houston Business Journal as one of the top 25 firms in the Houston/Galveston market. As CPAs we must comply with the high professional standards and continuing education requirements of the American Institute of Certified Public Accountants and the Texas State Board of Public Accountancy. We are also members in good standing with the Better Business Bureau. DRDA has the solution for your small business success. We will work closely with you from concept to formation, funding, closing, and beyond.