How can we use our 401(k)s to fund an EB5 investment?

Yes.

Yes, but you will have taxable distributions. Please book a free consultation if you wish to discuss further.

Yes, you and your wife may be able to use both of your 401(k) accounts to fund an EB-5 investment, but it usually requires a specific structure. U.S. immigration rules allow EB-5 investors to use retirement funds (including 401(k)s) as a lawful source of investment capital, as long as you can prove the funds were legally earned and belong to you. The key requirement is that the money must be your own funds and fully traceable (for the EB-5 “source of funds” documentation). Generally, individuals will pull their money from their 401K account, being willing to take the tax/penalty hits. However, if you want to do so, you can roll over the 401(k) funds into a Self-Directed IRA and thereafter the SDIRA can invest in the EB5 project on your behalf, if the roll over is structured properly. However, I can only advise on the immigration aspect and not on the taxation aspect of considering this process.

Sincerely,

David B. Raft | Partner | Global Immigration Partners
NYC
+1 917 719 4903 | 135 W 50th St, Ste 200, New York, NY 10020

LA
+1 818 914 6482 | 30300 Agoura Rd, Ste 100, Agoura Hills, CA 91301
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You can use 401(k) funds for an EB-5 Immigrant Investor Program investment. U.S. Citizenship and Immigration Services (USCIS) considers retirement funds a legitimate source for the required capital.
USCIS requires extensive proof that the funds were obtained through lawful means. When using a 401(k), you must provide evidence of:
* Proof how you accumulated the funds that were deposited into the account such as salary records, income tax returns, and employer contribution statements.
* Proof that you are entitled to the funds such as account statements showing your ownership of the 401(k) and the total balance.
* Traceability: Records of the withdrawal and the transfer of funds to the EB-5 project.