We are often asked if 401k, IRA or other retirement funds can be used to buy or start a business or franchise.
The great news is that you can! While one option is to take a loan from your retirement account, there is another option (often called a rollover as business startup) that is more flexible and offers many benefits over a loan in providing funding to your franchise or small business startup.
For example, while a 401k participant loan is limited to 50% of the account balance not to exceed $50,000 and requires regular scheduled repayment to the retirement account, a rollover as business startup or ROBS does not contain the same limitation or repayment requirement.
We can help you pursue a Rollover as Business Startup through our 401k SelfStarter Plan. To learn more about this financing option for your franchise, startup or other small business, please contact us to schedule a consultation.