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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > 401k rollover
Expert: Helen P. O`Planick, EA
Date: 9/3/2008
Subject: 401k rollover
Question
QUESTION: Helen, I have been running all over the Internet and one company informed me that you can roll over a 401(k) into a corporation that you plan to own without incurring any penalties. Is this true? Can it only be done for c-corps? or does it also apply to llc or s-corps as well please let me know.
J.P.
ANSWER: JP, keep running.
No, it is not true, as you cannot benefit from your retirement this way.
But I would love the link to see what else they promise.
Helen, EA in PA
---------- FOLLOW-UP ----------
QUESTION: Helen below is the link. The way it was explained to me(and not just by this company might I add) is that your company has to be a C-corp which would then open you up to the dreaded double taxation. But they set up a 401K plan for your company and roll it over to your new employer(the company) just as you would do if you left your job and went to another company.
Please tell me what you think!
http://www.guidantfinancial.com/default.aspx
Answer
I misunderstood your question. Of course you can roll your retirement into a business you own and it would work for any business, corp, S-corp or even sole prop. As long as you have a qualified retirement fund in your new company, it can be rolled.
I read into your question about you using your retirement to fund your new company. My bad.
Helen, EA in PA
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