This is an exciting first step! Please see the steps below to get started on your journey.
If you have any questions along the way, please contact us at (866) 693-7767 or firstname.lastname@example.org.
First: The Corporation
Please complete the Incorporation Questionnaire. Then, upon receipt of your check or credit card payment we will create your new C—Corporation and file an IRS Form SS-4 to apply for a Federal Taxpayer Identification Number [TIN]. This can be accomplished in a day or two in most states. With your Articles of Incorporation [corporate charter], authorizing resolution and corporate TIN, your bank will open a corporate checking account for you.
Second: The ERSOP® Plan
We will need to see copies of your Articles of Incorporation, resolutions and the SS-4 form if possible. Depending on many factors, your Articles may need to be amended. If there is an existing qualified retirement / 401(k) plan, we will need to review the documents and filings. If the corporation has elected S Corp status, a revocation probably will be in order. There may be additional fees and cost depending on the degree of complication. Please proceed and complete the ERSOP® Questionnaire Form following next below.
Third: The Rollover
In order to be eligible for a rollover from your employer’s retirement or 401(k) plan, you generally must have terminated employment with that employer. However, some employers offer some form of an “in-service distribution.” Larger employers make rollovers available within 30 days. If you are still employed, you should inquire now into your employers’ distribution policy with its human resources / benefits department. We will assist you in preparing any forms to secure the “direct rollover” of your retirement assets into your new Trust checking account.
Occasionally, some IRA custodians require special forms and signature guarantees. You, as trustee, will transfer money from the Trust checking account to the corporate checking account. Your new corporation will issue shares of its stock to the Trust. SDCC will prepare these certificates for you. The corporation will now have cash in the bank and no debt. Your debt free, cash rich corporation will be an attractive borrower.
The ERSOP® plan will require administration, allocations, trust accounting and federal government reporting (Form 5500) every year. We charge $900+ annual fee. Each corporate / plan year end, we will estimate the tax deductible contributions that you can make to what will become your favorite IRS “qualified” tax shelter.
The IRS will assess a $25 per day penalty for failure to timely file the Form 5500 to a maximum of $15,000 each year. The due date of the return is 7 months, plus a 2 and 1/2 month extension, after the Plan / Corporation year end. For a December 31 year end the due date is the last day of the next following July which may be extended to the 15th day of the next following October.
You may use these Magic Words to contact whomever is currently holding your funds (your prior employer, IRA custodian, broker, etc.) and ascertain just how long it will take to get those funds to move. If you experience difficulty we will assist you in a conference call with them. If you are currently employed and do not wish to tip you hand that you may be leaving, contact someone who has recently terminated with that employer and ask them how long it took to receive their rollover.