What is a reasonable salary for my ROBS Business?

Rollover as Business Startup (ROBS 401k) FAQ – What is a reasonable salary for my ROBS Business?

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ROBS 401k FAQ: Reasonable Salary Considerations

I am leaving my high-paying position as a Vice President at Fortune 500 company to start a cupcake business funded via a ROBS 401K Business Financing plan.  I also have a couple of kids in private school.  Based on my work experience and my need, I feel that it is justified for me to continue to receive the same compensation that I received in my prior position from my cupcake business – does this sound right?


No – while you may receive a reasonable salary from the ROBS-funded C-corporation once it is generating income to justify your salary, the considerations in terms of what is a reasonable don’t include the compensation that you received for prior unrelated work history nor your personal expense needs.

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>


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