If my company obtains financing via a rollover as business startup (ROBS business financing), do I have to make salary contributions to my 401k?
If you use a ROBS business financing strategy to fund your franchise or other small business, your company will have a 401k. You should defer at least 1% of your salary into the 401k and may defer up to the federal maximums. For 2023, the maximum annual contribution is $22,500 (see 401k annual contribution limits). If you are 50 or older, for 2023 you may also contribute an additional amount (referred to as a catch-up contribution which the IRS left unchanged at $7,500).
Same ROBS 401k Plan for All Participants QUESTION
I'm not clear on whether the 401K that is set up for the ROBS is the same one that employees can contribute to or if there is a second one set up for that purpose?
Just one 401k plan is sponsored by the business. Each participant in the plan will have their own participant account under the 401k plan.
