ROBS 401K Business Financing Plan FAQ – How Much Should I Invest in my ROBS funded business?
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ROBS 401k FAQ: When do I need to decide how much I will invest?
QUESTION: I am using a ROBS 401k Business Financing plan to buy a FedEx route. I know that stock will be issued based on the amount of non-retirement and retirement funds I will invest. I am not sure of the exact amount that I will invest – When do we determine exact proportional ownership?
RESPONSE:
When the 401k funds have been invested in the business, we will ask for the “final numbers” (i.e. retirement and non-retirement funds invested), and based on your response we will prepare stock certificates accordingly. At that time, you can give us the total amounts including the amount of non-retirement funds used to pay for business expenses such as our fee.
