There’s Still Time to Set Up a Self-Directed 401(k) Before Year-End

It’s that time of year again – time to wrap up the old and prepare for the new. If you’re already planning ahead for next year, you’re thinking about the steps you need to take to make your dream a reality. Whether you’re looking to launch a new company or have big changes planned for your business, chances are you need funding. With a self-directed 401(k) plan, you can access the cash you need quickly to start the new year strong.

Self-directed 401(k) plans get you your money fast

With a self-directed 401(k) plan – called a Rollover in layman’s terms – you can get your business funded in as little as three weeks. This is much faster than a traditional financing option like a loan. When you finance with a traditional loan, you have to submit an application, deal with an underwriter and jump through hoops with the bank. A self-directed 401(k) plan lets you access your money quickly. That’s because it’s your money, and not a loan.

Why speed matters to business owners

Business owners have no time to waste when it comes to securing funding. Reasons why include:

  1. Time is money: All businessowners know just how true this saying is. The less time you spend trying to get your money, the more time you have for your business.
  2. Busy season is coming: Depending on your industry, chances are you have a “busy season.” If you’re preparing to take advantage of the time of year but need more funding, a self-directed 401(k) plan gives you the money you need.
  3. Great deals are fleeting: Just as there’s a busy season, there are also times of the year when you can find a sweet deal on a new piece of equipment or buy more inventory/supplies. Don’t let a good deal pass you buy because of low cashflow.
  4. Timing matters for taxes: If you’re considering a large purchase, it helps to do it before year-end so you can claim it.
  5. It’s your money: Unlike a loan, a self-directed 401(k) plan allows you to access your own money. If you have a great business opportunity and need funding ASAP, why not use your own money?

Factors impacting when your 401(k) plan is ready

While receiving funds from 401(k) plans is faster than from other sources, there are factors that impact how quickly your plan is established.

First, setting up the plan requires Department of Labor and IRS approval. Working with a trusted third-party administrator (TPA) like Tenet Financial Group whose plan has already been pre-approved by the IRS will speed up the process. At Tenet Financial Group, we specialize in helping small businesses quickly and correctly establish self-directed 401(k) plans. Contact our specialists today to learn how you can invest in your business with your own funding.