Hi, for additional advice a great resource to reach out to for advice is SCORE, one of SBA's resource partners. SCORE is a nonprofit association comprised of thousands of volunteer business counselors throughout the country. They are trained to serve as advisors and mentors to aspiring entrepreneurs and business owners (at no cost to you). You can find your local office or set up an online meeting to chat with someone about your questions. You may also want to check out this blog post about borrowing startup funds. The related articles featured after the post may also provide some helpful information. Best of luck!

I joined it. So funny and happy. Thank you!

Yes the ROBS or 401k small business financing structure only works under a
C-Corporation entity type. Under the ROBS arrangement, the business owner's
401k invests in the shares of common stock which is only issued by
C-Corporations. Also, the C-Corporation must be an operating entity not one
setup for the purpose of making passive investments. Lastly, I strongly
suggest working with a well trained attorney and/or compliance professionals
before moving forward with using retirement funds to finance a business
start-up.

Good question and the answer is yes. The IRS refers to the use of one's retirement funds for funding or starting your own business as "rollovers as business start-ups" or ROBS, and most 401k providers refer to it as 401k business financing. This type of arrangement is popular if you have not other means of retaining start-up capital, have bad credit or want quick access to business funding capital. What's more, since you are using your retirement funds, whether IRA or qualified plan funds (e.g., former employer 401k, 403b, 457, DB, Pension or TSP), the use of retirements funds is not considered a distribution or a loan. To learn more about the ROBS arrangement visit   This post was edited to remove a link. Please review our Community Best Practices for more information about how best to participate in our online discussions. Thank you.