Entrepreneurs can leverage 401(k) Funds to start a business with no IRS penalties
North Wales PA July 29, 2009 - Benetrends, Inc. has developed a business partnership with SCORE, to assist small business owners nationwide with obtaining start-up financing or additional capital for their businesses, while at the same time providing a qualified vehicle to save for retirement. Benetrends, Inc. is the originator of the self-reliant business funding and retirement savings process, and has assisted thousands of individuals in financing their business as well as building funds for their retirement.
The process, which allows the use of funds from an individual’s retirement, IRA or 401(k) plan tax deferred and without penalty, can be used to start a new business, buy a franchise or purchase an existing business. The partnership with SCORE, a national non-profit association dedicated to educating entrepreneurs and the formation, growth and success of small business nationwide; provides education for small business owners regarding a financing resource that may otherwise be hard to come by in today’s economic landscape.
As “Counselors to America’s Small Business,” SCORE’s 11,200 volunteer counselors have provided free assistance to more than 8.4 million small businesses. According to Kenneth Yancey, SCORE’s Chief Executive Officer, the corporate partnership with Benetrends, Inc. presents a real opportunity for SCORE’s clients. “People need to know that this type of funding and retirement savings opportunity exists, and is possible. We found the team at Benetrends remarkably ethical, focused, and most importantly, a proponent for small business in America.”
Founded in 1983, Benetrends, Inc. provides a, proven plan for entrepreneurs to utilize their retirement funds for start-ups, based on long-standing provisions of the Internal Revenue Code. By investing a portion of their retirement funds in their own business, small business owners can build equity and improve cash flow right from the start, by reducing or eliminating the need for debt and the fixed costs associated with paying down the debt. Mark Nelson, President of Benetrends, recognizes the need for this type of self-reliant financing now, more than ever. “In today’s economic environment we have staggering numbers of unemployed individuals. Many of these people have accumulated considerable assets that are invested in the retirement plan of their former employer or some other retirement vehicle. With few options to access capital, investing a portion of those retirement funds in their own business may be a viable option for these people. At Benetrends our business is all about putting people into their own business and helping them save for their retirement. The joy in the job is that we’re often assisting folks in achieving life-long dreams.”
Individuals interested in using their retirement funds to start businesses or purchase franchises can contact Benetrends, Inc. at 866-423-6387 or learn about program highlights at Benetrends.com.
Mark Dobosz, Executive Director of the SCORE Foundation said, “This partnership is a true win-win-win. The small business client, SCORE, and Benetrends all benefit from these programs. This is one more opportunity for a small business owner to leverage something not thought of before.” Information about Benetrends, Inc. will also be available shortly through SCORE.org.