The IRS has issued guidance to its field agents on a new qualified plan design being marketed as a means to allow business owners to tap into retirement benefits for startup cost without paying applicable distribution taxes.
Document Excerpt
Recently, personnel in our examination and determination letter functions have identified a retirement plan design that appears to operate primarily to transact in employer stock, resulting in the avoidance of taxes otherwise applicable to distributions from tax-deferred accounts.
Link http://www.irs.gov/pub/irs-tege/rollover_guidelines.pdf
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