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Using SEP/Retirement funds to purchase an established business. Is this as easy as it sounds?

I have heard that you can use your SEP/retirement acount to purchase a small business. Is it really that simple? Is there alot of red tape, penalities, etc?

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The BAF Group LLC
MD

FORD KENNETH: Another one to ignore!

Oct 29, 2016
Joseph DiBello
Vested Business Brokers
Career Development Officer/Broker
Suffolk County, NY

Hi Lisa,

If you have a simplified employer pension plan "SEP" then you have a qualified retirement pension plan. This plan has restrictions as governed by the IRS for taking early distributions. Unlike an IRA or 401(k) you can not borrow against a sep plan without triggering a taxable event. If you are under the age of 59.5 you will have a 10% early penelty plus ordinary income tax for the year you take distribution. I have other options for you to consider regarding your sep but I would need to speak with you to discuss this. Please feel free to call me. Click on "my links" for phone contact.

Jul 6, 2010

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