Retirement Fund Financing FAQs

What is the difference between a 401(k) and an IRA?
A 401(k) is a retirement account sponsored by an employer. An IRA is a retirement account set up and maintained by an individual.

What kind of retirement account can I use to invest in a franchise?
After forming a C corporation of your own, you should be able to roll your funds over into a new 401(k), which will be set up through your new corporation. After you purchase stock in your new C corporation, the company has the money with which to buy a franchise--debt-free.

If I take a loan from my 401k to fund my franchise, how long do I have to pay it back?
Most companies require their employees to repay loans on their 401(k)s when they leave the company.