I understand there is a transaction called the Rollover for Business
Startups. But I am unsure as to how this transaction works. I am looking for
information about what the first step is?
Correct. The IRS refers to the use of retirement funds for financing one's
business as ROBS. For one the entity type sponsoring the 401k plan must be a
C-Corporation, the 401k participant then transfers his IRA or other
retirement funds such as a former employer 401k or 403(b), for example, to
the new 401k sponsored by the C-Corp; then the 401k buys stock shares in the
new C-Corp. Subsequently, the C-Corp uses the proceeds to fund a new or
existing business venture. You can learn more about ROBS by visiting:
http://www.mysolo401k.net/401k-small-business-financing.html
nolanm2 | Window Shopper | 2/19/2013 - 8:21 pm
business as ROBS. For one the entity type sponsoring the 401k plan must be a
C-Corporation, the 401k participant then transfers his IRA or other
retirement funds such as a former employer 401k or 403(b), for example, to
the new 401k sponsored by the C-Corp; then the 401k buys stock shares in the
new C-Corp. Subsequently, the C-Corp uses the proceeds to fund a new or
existing business venture. You can learn more about ROBS by visiting:
http://www.mysolo401k.net/401k-small-business-financing.html
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!