Update:My franchisor sent me to talk with a company called "FranFund".Bottom line: There is a process to achieve what I'm looking for.... for a fee and it is known as a "Rollover for business start-up". FranFund performs the service of running through these steps:Step 1: Get incorporated...must be a C-corp.Step 2: Form a 401k sponsored by the C-Corp. Need a third party administrator, in this case...FranFund uses Merrill Lynch as the custodian.Step 3: I would be a participant in the 401k and rollover money (for the business) from my another IRA account(s).Step 4: The C-corp would issue stock and this stock would be purchased within the 401k.* There are ongoing expenses with plan administration, including filing of Form 5500.* Have to open the 401k to all eligible employees and they can either opt in or opt out. They can be offered the opportunity to invest in mutual funds. They do not get the opportunity to buy C-corp shares.... that would open a whole can of worms and wouldn't be feasible for this small business owner.* Looking online, it appears that FranFund hasn't been having issues doing this. Here's a short Intuit discussion: http://community.intuit.com/posts/owner-purchased-stock-in-c...* Article mentioning it: http://ezinearticles.com/?Franchise-Startup-Costs---How-Do-I...* Another article: http://mobi.franchise-update.com/news/feature/503/ ...and there are other articles that lend credence to the idea that this is a proven approach that works if done exactly as the IRS requires.Fee? $4695.... plus ongoing administrative fees of $95/moAs one articles says, if you need $30k (for example).... just withdraw the money and pay the taxes. But, if you need a lot of money.... a crazy approach like this appears to be less painful than withdrawing hundreds of thousands of dollars and paying a mammoth tax bill.Rob
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