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How can an EB-5 investment be made with 401k retirement funds?

I have a 401k retirement account with approximately $1.5 million in it. Can I use these funds for an EB-5 investment? How soon would I have to withdraw them to start the EB-5 application? How far back will I need to prove the legal source of the 401k funds?

Answers

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    J Bruce Weinman

    Immigration Attorney
    Answered on

    That is fine, as long as you can get documents to show at least $500,000 of it. When you need the cash will depend on the investment you are making. Typically, a regional center will want the cash in an escrow account at the beginning of the process.

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    Ed Beshara

    Immigration Attorney
    Answered on

    As long as the EB-5 funds consist of your personal funds derived from lawful and authenticated sources, you are in compliance with the EB-5 regulations.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You must demonstrate that the capital you will invest was obtained through lawful means. It is likely that USCIS will want to see how you lawfully earned the funds that you deposited into your retirement account. This means that you might have to produce income tax returns or other credible evidence of your salary and wages from employment from an extended period of time. You must invest the funds and place them at risk with the new commercial enterprise before you submit your I-526 petition.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    You can certainly use your 401k retirement funds as the source of EB-5 investment. You may need to provide historical record to show how the funds were accumulated over the years and how you or your employer had contributed to it on a yearly basis.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Those funds are fine. Be sure to check on any penalties for early withdrawal. You will need to submit five years of business and tax returns and evidence of your company's 401k. A statement from the company controller should be sufficient with the other documents from your 401k accounts.

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    John J Downey

    Immigration Attorney
    Answered on

    Yes, they may be used. When you withdraw them will depend on the business plan submitted on behalf of your planned investment. The source of the funds will need to be proved probably back to your employment at the time the 401k was started.

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    Kyle Barella

    Immigration Attorney
    Answered on

    Yes, you may certainly use funds from your 401k to fund your EB-5 investment. The timing for pulling the money out depends on how quickly you wish to move forward in the investment process. I suggest retaining an experienced EB-5 attorney to assist you. The source of funds length would also be an appropriate topic to discuss with your immigration attorney.

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    Robert Lee

    Immigration Attorney
    Answered on

    You can use your retirement fund. The timing of your funds depends on when you need to invest in your project. You will need to prove the legal source only for your investment amount. For example, if you are going to invest $1 million from your 401k you only need to prove $1 million of the $1.5 million 401k.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You will need to show that contributions were made throughout the years that equal the investment amount (so, not necessarily the entire $1.5 million). If this was a 401k through your employer, your employment and company records may need to be included. You need to make an investment of personal funds either into the project directly or into the project's escrow account at the time of filing the I-526 petition.

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