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I had a 401(k) with my employer, who I left recently. I'm considering rolling this over into an IRA since I will avoid a small maintenance fee this way, but I'm not sure if I will lose the ability to roll over some of my retirement funding to start a business.

I found this page which says that can rollover from any "qualified" IRA – does anyone know how I can determine if my IRA is qualified? From elsewhere in the article it seems like maybe all IRAs are qualified?

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You can't do what you would like to do, unless your business has another, unrelated investor or is willing to invest an equal amount of funds + .01 into a corporation which will employ you.

You will then need to set up a self-directed IRA.

Additionally, you will need a trustee to account for all the disbursements from your IRA.

  • Thanks, are you just saying that I can't do what I want with an IRA or I can't do what I want even with a 401(k)? – Xodarap Jul 8 '14 at 19:38
  • So you will need to open a self-directed IRA to do what you want. You will need to work with one of several companies to open a self-directed traditional IRA, or open a IRA. In either case, you will not be able to use the funds until you send the money out of the 401k account. – cronos2546 Jul 9 '14 at 3:13
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A self-directed IRA could be a good solution for you and all IRAs are qualified IRAs the administrator must allow for alternative assets. However, if you're looking to do the ROBS (Roll Over Business Start-up) system, there are not very many administrators that can facilitate that. There is also a checkbook IRA (aka single member LLC) that more administrators are able to work with, but the rules are different from a ROBS plan. Check with your financial adviser, CPA, tax guru and ask which method would work best for what you're looking to accomplish.

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