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ROBS 401k Business Financing FAQ: Can I invest the rollover funds not invested in the ROBS business?
QUESTION:
I am considering using funds from my former employer’s plan to fund a business via a ROBS 401K. What happens to the amount I won’t need for the business startup?
RESPONSE:
As part of the 401(k) business financing process, we will prepare the paperwork to establish a brokerage in the name of the 401(k). This is the account into which you will deposit the transfer check(s) to rollover funds from your pre-existing retirement accounts. The rollover funds that are not invested in the ROBS C-corp and which remain in ROBS 401k brokerage account may be invested however you see fit in mutual funds, stocks, bonds, etc.
