ROBS 401K Business Financing Question Answered – Can I pay ROBS Setup Fee with retirement funds?
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ROBS 401k FAQ: Can I pay ROBS Setup Fee with retirement funds?
QUESTION: I am considering using a ROBS 401k Business Financing plan to start a fitness franchise business with my retirement funds. Can I use some of the funds that I will rollover from my former employer 401k to pay the ROBS setup fee?
RESPONSE:
No – per the 401k business financing rules, you can’t use retirement funds to pay the cost to setup the ROBS 401k plan. Instead, you would pay the fee with non-retirement funds and this amount will count as part of your personal investment for which you will receive stock personally.
