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TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 15723
Experience:  15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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I was off nine months ago and I have a new job starting

Customer Question

I was laid off nine months ago and I have a new job starting soon. I had a 401k with my previous employer and was considering a rollover IRA with those assets. However, I plan to start my own company in a year. Can I rollover all or some of the 401k from my previous employer to myself to invest that money into my company without tax or penalty? I was thinking that I could eventually create a legal structure for the company and then issue myself shares for the investment.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  TaxRobin replied 1 year ago.
HelloAny amount you do not rollover to another tax deferred account (like an IRA) will be taxable to you. You can keep some and roll some over but if you do the tax will apply and if you are not 59 1/2 then you will also have a penalty (10%).You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Customer: replied 1 year ago.
even with a Rollover as Business Start-up (ROBS) ?
Expert:  TaxRobin replied 1 year ago.
Even to start a business. If you really look at those ROBS. the path for the rollover is into a new 401k in a New Corporation.It is not as easy as keeping some out to invest in a business.
Expert:  TaxRobin replied 1 year ago.
The new corp would be using the 401k it now has to buy shares in your business.