Bottomline: Selling accounts receivable to your 401k cuts your current tax bill and grows both your retirement account and your business in a way standard contributions and investments can't.

† Your numbers will vary. Tax rules are numerous and fluid; so while we're pretty proud of how useful this calculator is; it's not a replacement for a real conversation between us, you, and your tax professionals.

¹ What's a reasonable discount you ask? It can vary. We'll help you find a rate that balances business growth and protecting income from unneeded tax. Approximately 2%-12% is the normal range depending on the nature of your industry and customer purchase terms.

² Think our pricing is too high or low? Then it probably is. The size of your average order, turn time, and compliance interaction required make a difference. While this is a fair estimate based on typical businesses we interact with, the larger your AR or average purchase, the more likely our costs will be a smaller percentage. Similarly, if your business has short, small, purchase order arrangements you'll find your costs materially higher.

³ Right. Obviously we're ballparking here using an average fed+state

⁴ Profitability in future years may climb since there would be no setup costs, business tends expand when more favorable payment terms are offered, and (while we don't offer investment advice : ) your own business is often considered a better return for your 401k funds than mutual funds or bonds.

If the benefits seem solid just call us. We'll sort out the details together. You'll make more money, quickly, or we don't want paid.

Telephone: 888-223-2307
Email: info@kreiken.com