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ROBS 401K Business Financing – Can my ROBS 401K reimburse me for startup business expenses?
Can I be reimbursed by Corporation if I pay for 1st month’s lease with personal funds?
RESPONSE:
- Any reasonable startup business expenses such as paying the first month’s rent, etc. that you incur with the nonretirement funds will be considered part of your personal investment for which you will receive stock in the company personally.
- Going forward, it is a good practice for all businesses (including those that were not funded with retirement funds) to pay for business expenses from the business account rather than using personal funds. It is acceptable to be reimbursed by the corporation for legitimate and reasonable business expenses paid with personal funds on an exception basis (e.g. meals, etc.).
