Payout for ROBS 401k Stock Investment


How does the payout work for the ROBS 401k regarding profit from the business? Would the business issue a dividend to the ROBS 401k?


In short: yes. All of the revenue generated by the ROBS 401k funded business will simply flow in and out of the corporation’s business account.  If at the end of the year after the company has paid expenses & taxes, the company has earned an after-tax profit the company could decide to distribute that profit to the owners.  In that case, the company would pay out dividends (profit) to the stockholders in which case it must pay all stockholders dividends in accordance with the ownership percentages. For example, if you and the 401k both own stock in the ROBS funded corporation, and the corporation decided to process a dividend payment, both parties would receive dividends.

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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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