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
Find an EB-5 Visa Lawyer: Immigration AttorneyYes, you can use the money in your 401(k) to invest in EB-5.
Ed Beshara
Find an EB-5 Visa Lawyer: Immigration AttorneyYour 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
Find an EB-5 Visa Lawyer: Immigration AttorneyIf 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
Find an EB-5 Visa Lawyer: Immigration AttorneyShouldn't be difficult. If you earned U.S. wages and paid U.S. taxes (especially with paystubs) that may be all you need.
Lynne Feldman
Find an EB-5 Visa Lawyer: Immigration AttorneyDocuments showing the withdrawal from your 401(K) to your bank account.
Salvatore Picataggio
Find an EB-5 Visa Lawyer: Immigration AttorneyYou'd have to cash out and commit those funds to the EB-5 investment.
Charles Foster
Find an EB-5 Visa Lawyer: Immigration AttorneyYou could use your 401(k) funds by withdrawing same, with certain adverse tax consequences.
Marko Issever
EB-5 Broker DealersIn 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 Taxes will also be due on the withdrawn funds because these funds accumulate on a pre-tax basis.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
Find an EB-5 Visa Lawyer: Immigration AttorneyYou 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
Find an EB-5 Visa Lawyer: Immigration AttorneyYour 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
Find an EB-5 Visa Lawyer: Immigration AttorneyIf you withdraw those funds from your 401(K), you can use them to invest.
DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.