Answer: In most cases, yes. Our plans are designed to meet the IRS requirements for qualified retirement plans. IRS regulations permit the rollover of funds from qualified plans to qualified plans without taxes or penalties. Regulations also permit the investment of retirement funds in the stock of the sponsoring company. The benefits of the plan do come with responsibility. It is imperative that a qualified retirement plan is established for the new company, and that it be used and operated as such. It is also required that this qualified retirement plan be made available to all eligible company employees. Because compliance is essential, it’s important to work with a company that specializes in retirement plan design and administration, to ensure compliance at setup, and continued compliance year after year.
What if my accountant (or lawyer) isn’t familiar with this type of financing plan or isn’t sure it could be done?
Answer: Retirement planning is a highly specialized field; for this reason, we recommend that you use a firm that deals only with retirement and pension fund planning and administration when dealing with your retirement or pension funds. While your accountant or attorney may not be familiar with this type of plan, we’ll be happy to walk through the process with them. Our partners have decades of experience in designing retirement plans to comply with the Employee Retirement Income Security Act (ERISA) of 1974, as well as Internal Revenue Code provisions. In fact, the plan was designed by our partner, an ERISA attorney himself. We feel so confident about the design of these plans that the company stands behind his plans with the industry’s only written guarantee for plan design, and he provides this guarantee up-front to each one of our clients.
Answer: Not a problem. You can consolidate all your retirement accounts in the new retirement plan.