Business
Cash Now and Rainmaker announce 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions
Cash Now and Rainmaker announce 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions.
About this update from Flexpower Inc
[{"type":"text","content":"Entrepreneurs can now finance Cash Now license purchases and other business ventures with 401(k) or IRA rollover assets\r\n\r\n\r\nFt. Lauderdale, Fla.--(BUSINESS WIRE)--April 21, 2005-- Cash Now Corporation, a pioneer and continuing leader in the payday loan industry, is now offering a way for investors to use their 401(k) or IRA rollover assets to finance new Cash Now licenses and expansions and as capital for other new businesses.\r\n\r\nCash Now can make this offer now because it has established an exclusive agreement with a U.S. tax consulting firm specializing in 401(k), 403 (b), Pension, Profit Sharing, IRA rollover or other types of retirement plans.\r\n\r\nThe result is that Cash Now can help entrepreneurs and investors use their 401(k), 403 (b), pension, profit sharing, IRA rollovers or other retirement plans to finance the purchase of a franchise. Cash Now can also advise entrepreneurs and investors on how to use these assets as startup capital for other businesses or to purchase business property with no taxes, no penalties and no loan repayment. This can be done without distributions, taxes, penalties, or the use of loans. In many cases the money can be used as venture capital to avoid loans, fees and interest. Following is what the IRS said about these matters in a favorable Letter of Determination it sent to a Cash Now client:\r\n\r\n\"These transactions are clearly within the letter of the law as spelled out in the Employee Retirement Income Security Act of 1974 (ERISA).\"\r\n\r\n\"Our tax consultant has more than 12 years experience setting up Rainmaker Plans and has never had a problem with the IRS,\" said Andrea Zecevic, Cash Now's president. \"What we're doing here is providing a proven road map for unlocking tremendous assets and capital, while avoiding future problems. This plan is laid out in the law and our tax consultant will obtain a letter approving the use of these funds in this way.\"\r\n\r\nThe IRS has established numerous rules to keep future retirees from spending the funds held in trust and awaiting them at retirement. Distributions are taxed as ordinary income--upwards of 50%. However, Cash Now advisor Leonard Fischer, using some of the provisions of ERISA, has developed a way to legally move money locked in 401(k) or other IRA rollover accounts directly into a new or established business withou...