Divorce can bring about many life changes. For those individuals who have been out of the workforce for a significant period of time, suddenly having to generate income may seem like a challenging hurdle to overcome. If owning a small business is something you see in your future, a BORSA (Business Owner’s Retirement Savings Account) Plan from DRDA CPAs & Business Consultants may be for you.
Deemed a ROBS (Rollover As Business Start-up) structure by the IRS, a BORSA Plan allows individuals to access retirement funds tax and penalty free to be used in a business start-up, purchase, or recapitalization.
Often time’s after a divorce individuals are awarded a portion of an ex’s retirement fund as part of the divorce settlement. Using a combination of retirement funds and possibly an SBA (Small Business Association) loan, you can invest in the small business of your dreams.