How can I use money in my 401(K) account to apply for EB-5? - EB5Investors.com

How can I use money in my 401(K) account to apply for EB-5?

I am working in the U.S. with a work visa. I have $250,000 in my bank account and another $250,000 in my 401(K) account. How can I use the money in the 401(K) to invest in EB-5? What documents do I need?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Yes, you can use the money in your 401(k) to invest in EB-5.

Ed Beshara

Ed Beshara

Immigration Attorneys
Answered on

Your EB-5 investment can be derived from lawful sources such as your 401(K). You will have to show how you accumulated your funds to deposit into the 401(K).

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

If you can take the money out, you can use it. This is presumably lawfully earned money. We would need your tax returns and income statements.

Phuong Le

Phuong Le

Immigration Attorneys
Answered on

Shouldn&#39t be difficult. If you earned U.S. wages and paid U.S. taxes (especially with paystubs) that may be all you need.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

Documents showing the withdrawal from your 401(K) to your bank account.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

You&#39d have to cash out and commit those funds to the EB-5 investment.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

You could use your 401(k) funds by withdrawing same, with certain adverse tax consequences.

Marko Issever

Marko Issever

EB-5 Broker Dealers
Answered on

In general, when you make a withdrawal from your 401(K) before you are eligible to do so, you will be subject to a 10% early withdrawal penalty by the IRS. Taxes will also be due on the withdrawn funds because these funds accumulate on a pre-tax basis. If you are older than 59.5 years, then you can make the withdrawal without penalty, but taxes will still be due. In your particular situation, if all you currently have is $ 250,000 in the bank as cash and another $250,000 in your 401(K) account, even if you are able to access those funds without penalty you would still not be able to afford the EB-5 investment, due to the taxes you need to pay on the funds you withdraw from your 401(K) account. If you have real estate, you could borrow money against it on a collateralized basis. Many applicants make up the shortfall in their funds through this method. Alternatively, if you have a close relative who would be willing to gift you the funds required to round up the investment, that could also be OK.

Hassan Elkhalil

Hassan Elkhalil

Immigration Attorneys
Answered on

You can use your 401(K) money to apply for the EB-5 visa. Consult with your immigration lawyer to discuss the best way to accomplish your goal.

Vaughan de Kirby

Vaughan de Kirby

Immigration Attorneys
Answered on

Your 401(K) is a valid provable source of funds. The issue you face is if you are not over 59.5 you will have tax liability and a 10% penalty on funds you withdraw. It you are over 59.5 you will have immediate tax liability. I would suggest you consult with your CPA and investment immigration attorney immediately. Time is very limited. Take action.

Stephen Berman

Stephen Berman

Immigration Attorneys
Answered on

If you withdraw those funds from your 401(K), you can use them to invest.

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