Unlock retirement assets
to fund your business

no interest.
no tax penalties.

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A Business Directed Retirement Account
(BDRA) is a structure which allows access to
retirement assets for your business.

Who can use a BDRA?

  • Business owners who need to show a cash injection (down payment) in order to qualify for an SBA Loan.
  • Individuals who have identified a business opportunity which can yield greater return than their existing retirement investment.
  • Individuals who can’t or don’t want to involve a bank in their business startup.
  • Anyone with a retirement account and a business need.

BDRA Timeline

The entire process generally takes about 3-4 weeks:

timeline

1-2 weeks to incorporate your business

2 weeks to rollover your retirement
assets into the new 401(k) plan.

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Frequently Asked Questions

  • Do I have to invest all of my retirement account?

    No, the amount you invest is completely under your control. Let’s say you have $500k in your retirement account but only need $250k. We can rollover the $250k and leave the rest untouched. Additionally, you can rollover the total amount and invest half in your company and the other half into traditional investments such as stocks, bonds, and mutual funds.

  • Can I be employed and still have a BDRA?

    It depends on the type of retirement account you have. Typically clients with a 401(k), 403(b), or 457(b) retirement account are required to no longer be employed with the company to access their funds. If a 401(k), 403(b), or 457(b) is with a previous employer, you will likely be able to remain employed and still go through the program.

  • Can I use the retirement account my spouse, investor, or colleague?

    This is possible in many cases, but we would like to make sure this is the best solution for you.

  • Can I do this on my own?

    Technically, anyone can do this on their own. However, the cost would be comparable to the fee we charge. Additionally, finding the right people to complete this transaction would take time away from focusing on your business. We can complete this process in 2 to 6 weeks while you focus on growing your business.

  • Is the BDRA a loan?

    No, this is not a loan. You will be investing your own retirement assets into your new business. As the business grows, so will your retirement account. If the company is successful, your stock is successful.

  • What if I have more than one retirement savings account?

    This is not a problem. We can consolidate multiple retirement accounts and transfer the total amount.