401(k) ROLLOVERS AS
BUSINESS STARTUPS (ROBS)
Fund your business using the retirement funds you already have, tax-deferred and free of annoying penalties.
As an industry-leading Third-Party Administrator, we specialize in Rollovers as Business Startups (ROBS) plan design, installation, and administration. This strategy allows you to use your existing pre-tax retirement account(s) to invest in a business – your new business or franchise! ROBS allow you to buy stock in your new company, tax-deferred and penalty-free—all while helping you start a debt-free business!
You’re in control, and you determine how much to invest in your franchise or startup business.
Secure Funding FAST – Typically In 4-5 Weeks
Accelerate Business Profitability By Managing Business Debt
Set Aside Tax-Deductible Retirement Savings
Tax Deferred Exit Strategy Program When You Sell Your Business
Gain Business Equity And Improved Cash Flow From The Start
WHY ROBS?
Debt-Free Funding + No Tax Penalties.
Use your retirement funds to start or buy a business or franchise. You’ll avoid tax penalties and extra debt, giving you a cash-rich start.
A Quicker Path to Profitability.
401(k) business financing isn’t a loan or a distribution. You don’t have to worry about monthly payments or racking up interest. With 401(k) business financing, you make money sooner rather than later.
Easy to Qualify.
You don’t need to risk your home as collateral or have a minimum credit score. If you have $50,000 in pre-tax such as a Keogh, traditional 401(k), 457, or TSP for example, you can use Rollovers for Business Startups (ROBS) to fund your business.
How to Fund a Business or Franchise with ROBS:
401(k) ROLLOVERS AS
BUSINESS STARTUPS (ROBS)
FAQs
-
401(K) Rollovers are a means of funding a new business or franchise using pre-tax retirement funds as the source of the dollars. Entrepreneurs who choose this method simply take their retirement funds and “rollover” the funds into a new Plan that then invests in the company – your new franchise or small business!
A Rollover involves four critical steps, among them the establishment of a C-Corporation and a 401(k) Plan. A qualified Third-Party Administrator is responsible for following the letter of the law as it relates to the design, installation, and administration of the Plan to remain in IRS compliance.
-
Yes! In fact, this is a requirement of a ROBS 401k Plan. Your 401k Plan Document will outline the eligibility requirements for your employees, and they too can have Pretax Deferrals withheld from their paychecks once eligibility has been met. In addition, employees can also be eligible to receive a portion of an Employer Match or Profit Sharing Contribution, which is tax deductible on the C-Corp Tax Return. Your Tenet Financial Group Plan Administrator will help you keep track of employee eligibility and contributions.
-
When the time comes to dissolve the Corporation or sell the business, the Corporation will reimburse your Shareholders—both yourself personally, as well as your 401(k) Plan. The funds that will go back into your 401(k) Plan are treated as 100% tax deferred income! Your Tenet Financial Group Plan Administrator will walk you through this step-by-step process to make sure you stay in line with all IRS rules and regulations.
-
Yes. You will be required to file an annual IRS Form 1120 Tax Return for the C-Corporation. You will want to make sure you have a CPA hired for this service. Tenet Financial Group will help you file an annual IRS Form 5500 for the ROBS 401(k) Plan.
-
After working with our Senior Consultants and Client Service Team to get your business funded, you will be assigned directly to one of our qualified 401(k) Plan Administrators. You will have access to email, call, text, or schedule a meeting, with your assigned 401(k) Plan administrator, at your convenience, regarding your 401(k) Plan requirements and filings. Your 401(k) Plan Administrator will be available to help you with everything from eligibility tracking, contributions, IRS filing requirements, and additional ROBS 401(k) Plan consulting, as needed.
Curious what your financial situation looks like from a funding perspective?
Use our Funding Calculator to assess your starting point and determine the most suitable funding options for your business, whether is be ROBS, SBA 7(a) loans, or other types of funding.
Contact us today!
Let's take the first step together to turn your entrepreneurial dreams into a reality!
At Tenet Financial Group, our expert team will :
Walk you through your available funding options.
Assist you in selecting the best option for your situation.
Help you navigate through every step of the complex funding process.