This really breaks my heart….A new client funded a new business with 401k proceeds and paid more than $40,000 in taxes and penalties. They could have paid zero! Its called the ROBS Plan (Roll Over Business Startup). It allows you to use 401k proceeds to start a business without paying tax or penalties.

If you are making a large business decision or financial decision and you are not sure about the possible impacts, please contact me beforehand. In many cases, it’s just a quick phone call and it may have a substantial impact on your tax liability.