Many executives in Corporate America have built a robust skill set. They are interested in testing their entrepreneurial skills, so this is one of the services Monty Walker and Walker Advisory Services can assist with.
Using a 401k and IRA to buy a business or franchise is highly regulated by the Federal Department of Labor and the IRS. This is because the money in a 401k and IRA receives special tax treatment as its purpose is to fund the investor’s retirement. Allowing this money to be used before the investor retires requires following and meeting strict compliance requirements. To help the entrepreneurs correctly use their funds, Monty and his team handle all the Plan Administration, act as fiduciaries, and meet all the Department of Labor’s and the IRS’s compliance requirements.
During my conversation on air with Monty, I asked the following:
What is the name of the 401k and IRA service you provide?
Answer: It’s called the Entrepreneur Retirement Plan of America.
Can this money in the 401k and IRA be used with other money to buy a business or franchise?
Answer: Yes, this money can be used, along with any other cash, an SBA loan, or another loan source, to buy a business or franchise.
How much does it cost to set up a 401k or IRA to buy a business or franchise?
Answer: The initial cost is approximately $4,500. Then, an additional monthly fee applies to manage the plan investments, meet all compliance requirements, cover the cost of annual Third-Party Procedural reviews, regulatory amendments and updates, and unlimited plan-related consulting.
Are most CPAs that handle tax returns familiar with a 401k and IRA?
Answer: No. As Monty explains, it is normal for him to introduce the Entrepreneur Retirement Plan of America program to a CPA and explain its structure and compliance. Monty welcomes a conversation with the business buyer’s CPA or tax professional so they understand how everything works.
The Entrepreneur Plan of America program meets the needs of a very small number of business or franchise buyers as it only helps those with money in a 401k or IRA. If you want more information, there is a 12-page PDF available to download about the Entrepreneur Retirement Pan of America.
Does this service include a TPA or Third Party Administrator?
Answer: Yes. Other 401k or IRA plan options are available, but they generally do not include the services of a Third Party Administrator or TPA. This also includes Record Keeping.
I’ve heard you say you are an Independent Trustee/Fiduciary Platform. What does this mean?
Answer: It is impossible to be independent in the decisions associated with the Plan and Plan Administration, especially when it comes to the prudence of investing in employer stock if the entrepreneur is the Trustee! ERPA is professionally managed and administered with an independent Trustee / Fiduciary platform. This means that the entrepreneur receives ongoing professional support and is not simply left on his/her own after the C corp. adopts the Plan. This is unique to the Entrepreneur Retirement Plan of America.
How do you manage your Investment Portfolio Selections?
Answer: We are a complete turnkey solution with an existing platform of professionally managed and optimized investment portfolios. The competition does not offer this.
Once again, I heard you talk about custodial services. What does this mean?
Answer: A custodian is a financial institution that holds customers’ securities for safekeeping to lower the risk of theft or loss. A custodian holds securities and other assets in electronic or physical form. No additional custodial services are required, and the competition also does not offer this.
Is there an audit of the Entrepreneur Retirement Plan of America?
Answer: An independent Certified Public Accountant audits the Entrepreneur Retirement Plan of America annually. The competition does not offer this.
How do you manage your Record Keeping?
Answer: All record keeping is maintained electronically and fully secured, with each person having access to manage his/her account 24 hours a day. Thus, the entrepreneur is not burdened with ongoing record-keeping maintenance.
What Financial Advisory Support do you offer?
Answer: The annual plan maintenance cost includes unlimited compliance support for the entrepreneur’s Tax Preparer, Attorney, and any other key advisors at no cost to the entrepreneur. The competition does not offer this.
What are the major differences between Walker Business Advisory Services and our competitors?
Answer: Our solution is 100% turnkey and includes a portfolio of professionally managed mutual funds. Our platform’s clients receive ongoing professional trustee, fiduciary, administrative, management, and investment services. Because we serve as the trustee and fiduciary for our solution, plan compliance/responsibility is removed from the client’s shoulders and placed on ours. That’s right. We, not the client, are responsible for plan compliance. It is our legal responsibility.
When using the Entrepreneur Retirement Plan of America (ERPA), an entrepreneur’s responsibility is reduced to making timely deposits of employee contributions and other general items, such as providing enrollment paperwork to eligible participants. With our service, support, and compliance structure, we provide the most compliant and comprehensive solution available when compared to any other provider…bar none.
Listen to my conversation with Monty Walker
If you prefer, you are welcome to listen to my conversation with Monty on my radio show
If you have questions or would like more information on selling a business, please call me today at (916) 570-2674 or click this link for us to contact you.
Rogerson Business Services is a business brokerage service based in California.
If you are ready to sell your California business, let us know your questions. Whether you are selling a medical practice, an HVAC business, a landscaping business, or any other business with gross revenue greater than $2 million, contact us today to learn about our successfully selling your business program.
We’re happy to talk with you about the process of selling your business. Give us a call or contact us when you are ready.
