Key takeaways
- After the rollover, the plan uses the $250,000 to buy stock, which counts as a plan investment.
- The rollover is reported on his tax return, but the taxable amount is generally $0 when the transaction qualifies.
A 62-year-old can move a quarter of a million dollars from his 401(k) into a franchise without a tax bill today. The catch is that his retirement plan becomes the investor, and the IRS keeps watching long after the money moves.
