Retirement Plan Administrator

Use Your Retirement Money to Fund or Expend Your Business

How it Works

To understand how you can finance your new or existing business with your 401k, IRA or other qualified retirement plan, you must understand how to access your savings without taxes, penalties, or interest.

You can use your Retirement money, including 401(a) pension, profit sharing, 401(k), 403(b), 457, other qualified retirement plan, IRA and rollover IRA to fund your own franchise, business start-up or business property.

The Internal Revenue Codes permitting these transactions go back to 1969. They were reorganized and expanded with the passage of the Employees Retirement Income Security Act (ERSIA) of 1974. 1978 saw the expansion of Salary Deferrals with 401(k) plans. The expansion of the stock market during the 1990s and the extension of individual participant investment control of 401(k) accounts led to a burgeoning desire for these plans.

There are legal strictures to redirect your locked retirement funds in retirement accounts, directly into a new or established business without it being a distribution (therefore NOT taxed or penalized). The money may be used for franchises, property, equipment or working capital.

Starting in 2005, the IRS increased its auditing of all employee plans and plans investing in employer stock received heavy scrutiny. Therefore you need to have an experienced retirement plan administrator to make sure that your qualified retirement plan is compliant with all IRS rules and regulations.

The cost to setup these types of qualifed retirement plans range between $4,000-$5,000 and then $800-1,300 annually.

For an explanation of the process go to ERSOP® Plan Scenario and the ERSOP® plan Presentation.

For more information contact SDCooper Company

Steven Cooper, QPA

Karen Franklin, CPA

Noel Conway, Esq.

They have more than 20 years of experience. More than 1,000 of these plans have qualified with the IRS.

Steven Cooper, QPA. Steven has over 30 years of Benefits Consulting and Pension Administration experience. Steven was the first to successfully market the ERSOP™ Plan to Franchisors and Business Brokers (beginning in 1999). He coined the term “ERSOP™ (Entrepreneur Rollover Stock Ownership Plan)” in 2001. Steve entered the pension field in 1979 by designing and installing sophisticated defined benefit defined contribution pension plans for the California Medical Association endorsed plan system. He was an early marketer of VEBAs (voluntary employees’ beneficiary association plans). He has owned and operated his own pension consulting and administration firm since 1984, designing several thousand plans over the years. Steve Cooper and Karen Franklin incorporated and formed SDCooper Company in 2002.

Karen Franklin, CPA. Karen has 25 years of Accounting and Tax experience specializing in small business taxation and employee benefits. Karen graduated Cum Laude from San Diego State University in 1988, and has taken extensive graduate courses in Taxation and Business Entities. Karen has practiced as a CPA Since 1991, worked with a large local CPA firm for several years, and served as Corporate Controller for a large ($60 Million) manufacturing company before working with Steve Cooper beginning in 1997. Karen developed the essential ERSOP™ Plan Exit Strategy in 1999 that entails the retirement of the stock in the ERSOP™ plan, and the subsequent S-Corporation election within the first few years of the business to minimize income taxes on the operations and eventual sale of the business.

Noel Conway, Esq. Noel graduated from Oregon State with BS in mechanical engineering in 1954, He received his JD from U.S.C. in 1959. Noel was originally a patten lawyer in the early1960’s. Noel started private law practice in Orange County California from 1960 through 1975. From 1975 to1984 entered in the oil business. In 1984 Noel went back into private law practice as an environmental lawyer. Through the years represented and was involved in corporations and their retirement plans. Noel practiced business law, forming corporations and issuing stock. Noel took advanced courses in corporation organization. He has worked with the SBA explaining the proper use of an ERSOP Plan when combined with functions of the SBA to waive the guarantee. He has acquired ERISA experience having been involved in pension plans since 1973.