Use an IRA to invest in a franchise

Consumers who have their retirement funds in IRAs rather than 401(k)s can use their retirement accounts to purchase a franchise. With self-directed IRAs, consumers are limited only by what types of investments the IRS prohibits consumers from making with retirement funds: collectibles, life insurance, coins (other than gold United States coins) and "party-in-interest" transcations (such as descendents, ascendents and/or fiduciaries).

In addition to self-directed IRAs, account owners can set up a corporation and roll their IRA into the new corporation's 401(k) plan and invest in a franchise using their 401(k).

In order to ensure that each transaction meets the IRS's strict standards, it is wise for consumers to work with qualified account facilitators at a reputable retirement investment company. Such professionals will make sure that every transaction in permissible.