401k Business Financing

Compares the ROBS 401k to the Solo 401k Loan

Solo 401k Loan Entity type that can establish: Any entity type (Sole Prop, LLC, S-corp) Repayment Required: Yes – monthly/quarterly payments, 5 year term, Prime+1% Employees Allowed: Owner-only business with no full-time w-2 employees Limit: 50% of the balance not to exceed $50,000 Cost: Hundreds of dollars ROBS 401k Entity type that can establish: C-corporation required Repayment Required: No – Equity […]

ROBS 401k Audit Causes DOL & IRS

Here are some of the most common items that lead to a Department of Labor (DOL) and IRS audit of employer plans including ROBS 401k plans (Business Financing 401k plans): Complaints by employees. They may submit a complaint to the government over disputes regrading items such as distributions, contributions  and participant loans. Form 5500. This […]

ROBS 401K: Real Estate Operating Company Requirements

While the ROBS 401k is often used to fund businesses such as routes (e.g., FedEx) restaurants, car care centers, senior and child care centers and other businesses that offer goods or services,  the ROBS 401k  can also be used to fund real estate ventures as long as the real estate operating company requirements are satisfied. […]

Can I use this to buy a boat?

QUESTION: I have an IRA. I need the entire amount to buy a boat that I will use as a business (cruises and AirBNB). Would I have to take a loan and pay it back w/in 5 years at prime? What happens if I miss two or more payments? Thanks, Beth ANSWER: If you are […]

Third-Party IRA Investors in ROBS Business Financing 401k

For ROBS 401k entrepreneurs who do not have enough retirement funds to fully finance their business and have no other means of obtaining additional financing (e.g., SBA loan ), the entrepreneur will seek business financing from other , non-disqualified party IRA investors. When seeking funds from other non-disqualified party IRA investors for investing in your […]

Top 10 Business Financing 401k (ROBS 401k) Items to Know

Neither nondeductible (after-tax) IRAs nor Roth IRA funds can be transferred to the Business Financing 401k (ROBS 401k). While Roth 401k, Roth 457 and Roth 403b can be transferred to the “Roth Designated Account” bucket of the Business Financing 401k (ROBS 401k), this bucket cannot be invested in your C-Corporation business. As a rule of […]

Steps Involved In Using a TSP to Fund a ROBS C-Corp Business

Request: Please give me a list of the steps involved in moving my money from my TSP account into a C Corp and using the funds to buy a business. ANSWER: The Business Financing 401k Plan, also known as a ROBS 401k, allows you to fund a business with your retirement funds without taking a […]

Solo 401k Loan for Business Financing & 401k Business Financing Plan

If you are seeking to use your retirement funds for business financing and currently have retirement funds in various former employer plans and IRA accounts, the financing of the business can be done using solo 401k funds through a solo 401k participant loan or using the 401k business financing plan (also known as a ROBS […]

Business Financing 401k Flow for Subsequent Stock Investment in the C-Corporation

QUESTIONS: How does the release of funds work after I open the C-corporation that is funded with my business financing 401k plan? I guess my question is, do I need to send some sort of request every time I need to use the money, does it need to get approved, or the money is available […]

403b can I use it to fund my business?

403b QUESTION: I am thinking about using my 403b funds to fund my business, can this be done and would like to know how the process works timing, and fees associated with it. 403b ANSWER: While a 403b cannot invest in one’s own business, yes a 403b can be transferred to the business financing 401k […]

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