Confusion often arises with respect to which type of retirement account may be used to finance one’s own business. This blog post will hopefully help clear this confusion which has led to some retirement account holders who mistakenly used their IRA to finance their own business instead of the ROBS 401k.
Video Slides: https://www.mysolo401k.net/wp-content/uploads/2021/08/ROBS-401k-Business-Financing-Vs-Self-Directed-IRA-LLC.pdf
One Comment
Mark, if I receive royalty income from writing books, would it make sense to set up a ROBS-owned corp. to receive the royalty revenue and pass as much of the corp. profit as possible (40% max most likely, per IRS 60/40 rule) to the ROBS in the form of dividends? On a personal tax return, I can’t report the royalties on Schedule E; they have to go on Schedule C, as they are derived from my work. It seems like a ROBS would be a good idea for this; am I missing something?