401k/IRA Rollover as Business Startup Funding

401k_iraWant to start your own business? Do you have IRA, 401k from a previous employer? Other types of qualified money are: 403b, 457, SEP, Pension Plans, Thrift Savings Plan, Annuities or KEOGHS. Do you have near $50,000 or more in these accounts?

If the answer is YES, we have a safe proven plan based on long-standing provisions of the Internal Revenue code. Did you know that you can utilize your Retirement Accounts to capitalize your business Penalty Free and Tax Deferred?

  • You invest some portion of your retirement funds in your business, giving you more control over the performance of you retirement plan assets.
  • You gain business equity and an improved cash flow position from the start.
  • You accelerate business profitability by managing the amount of debt your new business takes on.
  • You secure funding fast – typically 3-4 weeks.
  • You can set aside tax deductible retirement savings up to $56,500 per year.
  • You optimize business equity and value.

The requirements for this unique program are designed for the benefits of for profit business only. It requires that the retirement funds not be tied to a current employer. Qualified funds can include those of your spouse or business partner.

  • This is not a loan.
  • This is not a taxable distribution.
  • You can use the money for ANY business expense AND to pay yourselves or your employees a salary.
  • If you need a SBA loan, you can use the funds from the rollover as the cash injection the bank requires.
  • The funding method is called a ROBS Plan (Rollover as a Business Start Up), also known as a self- directed 401k. This funding structure originated in 1974.
  • We partner with a company that helps all our clients that are interested in exploring this type of funding.


Our goal together with our Rollover as a Business Start Up (ROBS) partner is to ensure the funding process of our clients’ business or franchise is as simple and beneficial as possible. The following describes the steps that our ROBS partner takes to roll existing funds into a new business or franchise.

Step 1:  Form a Corporation

Our ROBS Partner will form this corporation or work with your attorney during the formation process.

Step 2:  Corporation Sponsors a 401 (k) Plan

Our ROBS Partner’s unique 401(k) Plan has been designed to allow for investment into your corporation.  Our 401(k) Plan has been pre-approved by IRS.

Step 3:  Rollover to a new 5401(k) Plan

Our ROBS Partner will help you through the process of moving your retirement funds from your previous employer’s 401 (k) or IRA into the new ROBS 401 (k) Plan

Step 4:  (401(k) Plan Invests in the Corporation

Your new 401(k) Plan purchases stock in the corporation.  This 401(k) Plan now holds stock in the corporation and the business is debt-free and cash-rich from the sale of the stock.  At this point, the corporation will now be able to purchase your new business or franchise.