ROBS 101

Invest funds from your retirement account into your business startup.

ROBS Financing is a way to self fund your business startup

Invest in yourself.

Instead of investing in someone else's dream, invest in your own. Here is one example of a popular strategy to help fund a small business.

• Entrepreneurs Receive Funding for Business

• Begin your business journey with ROBS financing.

  
  

A rollover for business startups (ROBS) allows you to invest funds from an existing 401(k) or individual retirement account (IRA) into your business without paying early withdrawal penalties or taxes.

We can help you establish a strategy that allows you to combine a variety of retirement plans into one.

Avoid loan payments or interest with this worry-free strategy. Many clients use this debt-free method to fund themselves. There is no loan interest, and no credit is needed. Others may choose to use the funds as a down payment on a SBA 7(a) or 504 loan. Often to buy an existing business.

How many plans are being accessed or how many people are rolling in does not affect our fee. Perhaps the husband and wife both want to roll in—we just need one.

Most retirement plans qualify. These include 401(k), 403(b), 457, Annuity Plans, Cash Balance Plans, Defined Benefit Plans, Employee Benefit Plans, IRAs, Profit Sharing Plans, Thrift Savings Plans, Rollover IRAs, SEPS, and SIMPLE IRAs. The notable exceptions are a Roth IRA, a Roth 401k, or a non-spousal inherited IRA. Generally, the funds must be available, meaning prior employer.

It's a two-entity structure; first, we establish the operating entity, which is required to be a C Corp. Next, we establish a 401k plan for the C Corp. Now we have the employer and the employer's plan. The client can now roll all of a plan, portions of plans, or multiple plans; more than one person can roll. The funds go from where they are now into the new 401k account via a qualified rollover; therefore, there is no tax or penalty, regardless of the client's age. Then the client makes an investment decision.

Asset and Cash Management Solutions

Stephen Herbert Akin

• Wealth Management

• 401(k) Rollovers

• Alternative Investments

• Endowments and Foundations

• Estate Planning Strategies

• Executive Financial Services

• Financial Planning

• Philanthropic Management

• Retirement Planning