The Pension Transfer Trust Plan:
The solution to small business funding

Our pension professionals have created the Pension Transfer Trust Plan, a multiple-employer pension plan which allows you, as an entrepreneur, to unlock the value stored away in your IRA or 401k. The plan combines a 501(a) tax-deferred trust with pro-rata, new comparability and safe-harbor 401k features. This gives you full access to those funds for help in financing your new business.

The Pension Transfer Trust Plan has received favorable letters of determination from the IRS multiple times indicating that the plan document satisfies applicable tax-qualification requirements.

With The Pension Transfer Trust Plan in place, you have a financing solution based on an exemption in ERISA law that allows business owners to invest their retirement funds in their own business on a tax-deferred basis, with no early distribution penalties.


Once we set up your plan, you will transfer your retirement funds from your current custodian (Fidelity, Schwab, Merrill Lynch, etc.) to your new pension plan. This is simply a custodian-to-custodian transfer and NOT a distribution; therefore, it is not a taxable event.  You have simply moved your qualified pension funds from one plan to another. No distribution = no taxes due and no early withdrawal penalties.

Once the funds are in your new plan, you need to choose how to invest those funds. Rather than investing in mutual funds, you will have your pension plan invest in the stock of your new corporation.  This stock is what the IRS terms as “qualifying employer securities”.

Five basic steps to small business funding:

  1. We form a closely-held business corporation in your state.
    You tell us in what state you want your new business incorporated and what name you want to use and we do all the work to get your corporation set up. This includes your Corporate Charter, Articles of Incorporation, initial resolutions, by-laws and stock certificates.
  2. Your new corporation adopts the Pension Transfer Trust Plan as its its tax-qualified retirement plan and trust.
    Your new corporation becomes a co-sponsor of the Pension Transfer Trust Plan, an already-established tax-qualified plan that has received a favorable determination letter from the IRS.
    The current trustee or custodian of your retirement funds transfers the funds to the Pension Transfer Trust Plan, to be held in an account solely for your benefit.
  3. We prepare the letters and notifications you need to send to your current trustee or custodian and send them to you for your signature. We provide specific instructions to help expedite the transfer process.
  4. The Pension Transfer Trust Plan buys stock in your new corporation for your benefit.
    We provide an appraisal of the corporation to be sure the Pension Transfer Trust Plan is paying fair value for the stock. We prepare the stock subscription agreement and stock certificates required for the trust to buy the stock in your new business. The trust wires the funds to your corporate bank account.
  5. The corporation deposits the cash from the stock sale and your business is funded.
    Your corporation now has the cash in the bank to get started or expand.

The components we provide:

We provide these components for you to participate in the Pension Transfer Trust Plan:

  • A tax-qualified plan and tax-exempt trust
  • A Corporate Charter, Articles of Incorporation, and Resolutions
  • A principal sponsor of the PTTP
  • A custodian to hold the stock in your corporation owned by your Pension Transfer Trust Plan account
  • A trustee to administer the Plan’s trust
  • All of the legal documents to support these procedures: plan and trust documents, stock subscription agreements, initial cash value appraisal.
  • A group of professional specialists to advise the Pension Transfer Trust Plan: a provider of administrative services, an ERISA pension attorney, a registered investment advisor, and an investments custodian

Pension Transfer Advisors is the only company that can take care of all of these steps for you for one low flat fee and no upfront deposit. NO UPFRONT DEPOSIT is a big deal. Other companies not only charge higher fees but they require you to pay those fees before they even get started working for you. You do not pay one dime of our fee until your new corporation is funded.