All Forum Posts by: Lisa Liberski

I will be actively making multiple transactions annually. I am investigating the Solo 401k - it looks like my best option at this point. To escape possible IRS scrutiny in the future, I would probably take the $50k loan and use that as capital. Unfortunately, this route does not make the total amount of my IRA available to me for my purposes, but I think the tradeoff is woth it.

Thank you - I greatly appreciate your time and value your opinion.

J Scott, Can you please tell me why you wouldn't recommend the product? It would better help me make a decision.

I am currently researching alternatives (solo 401k). I don't want to get stuck in research mode, but I don't want to be stuck in a bad situation either.

[If I'm reading Eric's question properly, that was an area Guidant cautioned me on. You can not benefit from the IRA funds. No family vacations, etc. ]

Guidant's plan either recommended or required (don't remember which) that a salary be drawn. That salary is obviously going to benefit you. That's where I am hung up on this. I understand that the C Corp is a separate legal entity so the profits benefit the C Corp and the C Corp's shareholders. But the salary part? It screams personal benefit.
Also, if all of the profits made have to stay within the 401k plan, I don't see how I would earn enough capital to buy back the shares. I would have to sell or shut down.
I'm considering a Solo 401k as an alternative. I own my own business and even though a loan would only give me $50k to work with, I would be able to use my personal assets to supplement and not have the IRS cloud over my head.

Eric,
I was told that you could either buy back the shares all at once or over time. With each buy back, however, the business would need to be valuated - which is costly. To consider - if the business is profitable, the per share price will likely increase. The second option is to sell all holdings, cease business operations and shut down. I'm still trying to wrap my head around the exit strategy - that's why I'm curious if anyone has done it.

Thank you for the info. My internet search turned up mixed reviews - but mostly negative. Have you tried to obtain lender financing through your C Corp? We would still need a loan (looking for a guidance line with a local bank) to help fund purchase and construction costs. The banks that we have visited seem to be cautious of the IRA owned C Corp - as the concept is foreign to them.
You said that you set one up with Guidant a couple of years ago. Are you still with them? Are you still operating the C Corp that is 401k owned or have you found a successful exit?

Looking to possibly set up a C Corp and have our IRA buy shares so that we would have available capital for fix and flip opportunities. Does anyone have this arrangement set up or had in the past that can give me advice as to whether this is a "safe" method for utilizing IRA funds? Viability of this arrangement in the future with the IRS? Any successful exit strategies?

Also, if anyone has used Guidant Financial that would like to share their experiences with this company and their products, I would love to hear your input.

Thanks!