Using 401k or IRA

401k or IRA to buy a business or franchise

With the global and national economies moving out of recession, a strong trend is developing from those working in Corporate America and are between the ages of 35 and 50 and built a 401k or IRA to decide that corporate life has been nice but there is more. Many executives in Corporate America have built a strong skill set and have an interest to test their entrepreneurial skills and so this is one of the services Monty Walker and Walker Advisory Services can assist.

Using a 401k or IRA to buy a business

The use of a 401k and IRA to buy a business or franchise is highly regulated by both the Federal Department of Labor and the IRS. This is because the money in a 401k and IRA has been given special tax treatment as its purpose is to fund the retirement of the investor. To allow this money to be used before the investor retires requires following and meeting strict compliance requirements. To help the entrepreneur correctly use their funds, Monty and his team handle all the Plan Administration and act as a Fiduciary as well as meet all the Compliance requirements of both the Department of Labor and IRS.

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 cash as well as an SBA loan or other loan source to buy a business or franchise.

How much does it cost to setup 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 and to meet all compliance, cover the cost of annual Third Party Procedural reviews, regulatory amendments and updates as well as unlimited plan related consulting.

Are most CPA’s that handle tax returns familiar with a 401k and IRA?

Answer: No. As Monty explains, it normal for him to introduce the Entrepreneur Retirement Plan of America program to a CPA, explain it structure and compliance. Monty welcomes a conversation from 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 from my website by clicking the following link.

Does this service include a TPA or Third Party Administrator?

Answer: Yes. There are other 401k or IRA plan options available but they generally do not include the services of a Third Party Administrator. 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’ve heard you talk about Custodial Services. What does this mean?

Answer: A custodian is defined as a financial institution that holds customer’s securities for safekeeping to lower the risk of theft or loss. A custodian holds securities and other assets in electronic or physical form. There are no additional custodial services required and this is also something the competition does not offer.

Is there an audit of the Entrepreneur Retirement Plan of America?

Answer: The Entrepreneur Retirement Plan of America is audited every year by an independent Certified Public Accountant. 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. The entrepreneur is not burdened with on-going 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 completely 100% turnkey to include a portfolio of professionally managed mutual funds. Clients using our platform 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 shoulders of the client 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

More questions?

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.



    5150 Fair Oaks Blvd, #101-198
    Carmichael, CA, 95608-5788


    Phone: (916) 570-2674
    Fax: (916) 473-8655


    Buying or selling a business is a complex process – and you shouldn’t go through it alone. You need an experienced business broker to guide you through the process.

    We make buying and selling businesses simple and straightforward. We’re qualified to handle the most complicated aspects on behalf of our clients, ensuring you walk away satisfied.