401k Rollover (BDRA)


Business Directed Retirement Account (BDRA)

What is a BDRA?

A BDRA allows you to use (rollover) your retirement account (ex: 401k) to fund a purchase or capitalize a business, without taxes or penalties.  This is a unique retirement account that avoids loans, banks, or credit checks. The process involves using your stagnant retirement account to buy equity (stock) in your new business. Essentially, you become the investor and the owner.  Blue Clover Financial has created a high quality BDRA that allows for complex and unique situations to be fully serviced through our network of top legal attorneys. Fill out the form to the right to get more detailed information about our services and a FREE FAQ report on BDRAs.

Rollover-as-Business-Startup-Funds
How does the process work?

  1. The 1st step is to create a new company for your business.
  2. The 2nd step is transferring the money from your previous retirement account to a newly customized 401(k). The company will adopt the 401(k) just like any Fortune 500 company would.
  3. The 3rd step is the 401(k) will purchase stock in your new company. Now the company has the money from the 401(k) and the 401(k) has stock in the company.

Why can’t I do this on my own?

Technically, anyone can do this on their own. However, the cost would be comparable to the fee we charge. Additionally, finding the right people to complete this transaction would take time away from focusing on your business. We can complete this process in 2 to 6 weeks while you focus on growing your business.

I don’t want to do a C-Corp.

We understand that there are some common concerns about C-Corps. Please know that because of the C-Corp, you will be able to access your retirement fund with no penalties or taxable distributions. Additionally, the C-Corp offers personal asset protection just like an LLC or S-Corp. Lastly, you will more than likely avoid double taxation. Please consult with our advisors on your unique situation.

What is included in our fee?

We set up a corporation for you, provide 5 year management service of your corporation, create a customized 401(k) plan for your needs and manage the complete process of rolling over your retirement account. Our competitors charge a similar fee for a lower quality service. This can put your company at risk. We work with top lawyers in the field and cut no corners to ensure we offer the highest quality service and customer experience.

What can you roll?

Plan Description Yes/No
Simple IRA Employer Sponsored IRA Yes
401(k) Employer Sponsored Retirement Plan Yes
IRA Traditional Individual Retirement Account Yes
SEP-IRA Simplified Employee Pension Yes
Money Purchase Employer Sponsored Retirement Plan Yes
Stock Bonus Plan Employer Sponsored Retirement Plan Yes
Profit-Sharing Defined by Profits of the Employer Yes
403(b) For Educators & Non-Profits Yes
457(b) For Government Employees Yes
Thrift or Savings Plan $$ Matched By Employer Yes
Roth 401(k) $$ Put in After Taxes Are Paid Yes
Designated Roth Account Portion of 401(k) Put Into A Roth Account Yes
Pension Plan Defined by Distribution Maybe
ESOP Employee Stock Ownership Plan Maybe
Annuities Not A Retirement Account No
Roth IRA $$ Put in After Taxes Are Paid No
Life Insurance Not a Retirement Account No