Highlights for Business CPA -Business Financing 401k (ROBS) 401k

While the 401k provider will take care of annual compliance items related to the business financing 401k (ROBS 401k), the business CPA should be aware of the following main items:
  • The ROBS 401k funded business must be and remain a C-Corporation and NOT be an S corp as long as the 401k owns equity in the corporation.
  • Ownership will be via (i) 401k for your benefit and (ii) you personally since you will invest at least 1% of your personal funds in the C-corporation.
  • Any compensation that you receive for the work performed needs to be paid as w-2 wages
  • No personal loans to company.
  • No interact between the ROBS 401k funded business and other businesses that you own.
  • Your only relationship should be w-2 employee and owner of the company.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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