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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 482
Experience:  Former IRS Revenue Agent
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We are a restaurant/bar raising investment for opening, our

Customer Question

We are a restaurant/bar raising investment for opening, our investment structure is a 70-30 payback schedule flipping to 30-70 after fully paid equity starting in year 7 with no cap.Question from investor - "Can I use a Pension Plan for the investment"
Submitted: 11 months ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 11 months ago.

Hello! My name is***** to JustAnswer. I'm reviewing your question now, and will post back with your reply momentarily.

Expert:  Dr. Fiona Chen replied 11 months ago.

Dear Customer,

It seems that you have a potential investor thinking to use his pension to invest in your business.

Now, what does the investor mean by "pension", and do you know?



Customer: replied 11 months ago.
He has a pension plan and wants to invest in our project from his pension plan, is it ok to have him invest through the pension plan or should the check come from him
Customer: replied 11 months ago.
No worries we figured it out ourselves, Thank you!
Expert:  Dr. Fiona Chen replied 11 months ago.

Dear Customer,

A pension plan by definition is held by his former employer. A pension plan is a defined benefit plan. The plan is held by the plan administrator. The beneficiary at the most gets monthly payment.

If he is thinking to use self direct IRA or 401(k), etc., it is more complicated than you want to get involved

I am glad that you specified your question.

The check needs to come from him no matter what. Otherwise, you are getting involved with potential problem with how he manages his retirement plan(s).

Please feel free to follow up.



Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP