Frequently Asked Questions

Am I eligible to use the Pension Transfer Trust Plan (PTTP)?

If you have qualified pre-tax funds that can be rolled over into another qualified plan, then you are eligible to use the PTTP.

What types of accounts can I roll over to the Pension Transfer Trust Plan?

Almost all types of tax-favored retirement accounts can be rolled over to the PTTP, including 401(k), 403(b), government 457(b), IRA, profit sharing, SEP and SIMPLE plans. Account types that CANNOT be used are Roth accounts and IRAs inherited from a non-spouse

Is there a minimum or maximum amount I can transfer?

No. However, we generally recommend that a minimum of $50,000 be transferred to make the transaction economically feasible for you. Call us if you have less than $50,000 so we can discuss your personal situation.

Do I have to transfer all the funds in my existing retirement accounts to the Pension Transfer Trust Plan?

No. You can transfer only the amount you need to start or buy a business. However, one of the advantages of the PTTP is that your PTTP account also can invest in mutual funds offered by Great West Retirement Services (GW). Some of our clients will transfer more funds than they expect to need initially for their new business and invest the balance in GW mutual funds. Then, if their business needs additional capital in the future, it is already in the PTTP and it can be moved from GW to your business.

How long does it take to complete the process?

It takes about three weeks from the time you tell us you are ready to go to complete all the steps we take to fund your new business. There are two primary variables which can speed up or slow down your specific case, and those are the state in which you choose to incorporate and the custodian of your current accounts. Some states, such as California, take a little longer to process new incorporations. While most custodians reply promptly to a request to initiate a rollover, others drag their feet. Whether your custodian will wire transfer your funds or will mail a check will affect the time your funds are available to you. We work closely with you to minimize these potential delays.

What type of business can I start or buy?

You can use the PTTP to fund virtually any type of business, including real estate. One exception is a business whose primary purpose is lending to others.

Do I have to quit my job in order to roll over funds from my 401(k) plan?

You might want to check with your existing plan sponsor. Many plans do not allow “in-service distributions,” meaning they do not allow access to your retirement funds while you are still employed. However, if you rolled over funds from a previous job into your existing plan, you usually will be allowed to access to those funds while you are still employed.

Why do I have to use a C-corporation?

A C-corporation is the only legal entity that qualifies to be a sponsor of the PTTP. Other legal structures, such as LLCs and S-corps are “pass-through” entities and, therefore, do not qualify.

I have always heard there is double taxation with a C-corp?

That is only true if the corporation issues dividends to its taxable stockholders. Dividends are usually only issued if your corporation has excess cash AFTER paying you a salary and perhaps a bonus and making tax-deductible contributions to the retirement plan for your benefit and the benefit of your employees. If your corporation did pay a dividend, remember that dividend would be paid to the stockholders of the corporation, which in this case would be the tax-exempt PTTP. The dividend would not be taxable until it is taken out as a distribution.

How long has Pension Transfer Advisors been in business?

Pension Transfer Advisors has provided the PTTP for hundreds and hundreds of business owners to fund their business since 2004. Our clients love the personal service they get from a privately- owned and managed provider.

Where do you do business?

We can service clients in all 50 states. Most of our documentation can be sent and received by email, fax or priority mail.

Is your fee based on the amount I transfer?

No. We charge a flat fee regardless of the amount you transfer. You can transfer from multiple accounts into the PTTP for the same flat fee. Most important, we do not charge one dime of our fee until your rollover is complete and your new corporation is funded.

Can I take a salary from my corporation?

Yes. In fact, to participate in the PTTP, you must be an employee of the corporation and pay yourself a reasonable salary for the services you perform.

How much of the business can I own through the PTTP?

Unlike other plans, with the PTTP, your retirement plan can own as much or as little stock in your corporation as you wish. You can also contribute personal funds to your corporation and be a personal stockholder in your corporation.

Can my employees participate in the PTTP?

By law, all employees who meet eligibility requirements must be allowed to participate in the PTTP. This gives you a great advantage to attract quality employees to your business. With the PTTP, you can choose from five different plan options that best fit your business.

Can my employees buy stock in my business?

You are required to offer eligible employees the opportunity to purchase stock in your business with their PTTP accounts. As a practical matter, though, few, if any, employees choose to do so. The PTTP is set up where your eligible employees have the option to invest as much of their PTTP contributions as they choose in mutual funds offered by Great West Retirement Services.

What is the monthly maintenance fee for?

None of our hundreds of clients want to be in the pension management business. There are a lot of rules and regulations involved with sponsoring a retirement plan, so for about the cost of a monthly cell phone bill, Pension Transfer Advisors LLC will provide all the support services for your retirement plan. Call us and we can send you a complete list of the administrative services provided.

Is this a loan from my retirement plan? When do I pay it back?

No, the money to fund your new business is not a loan from your retirement plan; therefore, there is no payback provision. No loan…no interest to pay…no money to pay back. Your retirement plan is actually buying equity (stock) in your new corporation. When your corporation is sold, the proceeds from the sale of the stock will go back into your retirement plan. If you want to put some of the money back into the PTTP while you are still operating the business, your corporation can buy back the stock from your retirement plan at any time at the current fair market value of the stock (as determined by an independent appraiser). Your corporation does not have to buy back any of the stock nor does it have to buy all the stock at the same time.
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How do I get started?

To join hundreds and hundreds of other business owners who have used the Pension Transfer Trust Plan as their preferred plan to fund their new business, Call or email us today at 832- 532-6830 Ext 101 and let us know you are ready to go.