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AdBits Episode 1 – ROBS

AdBits Podcast

In the first episode of AdBits, IRA Financial’s Adam Bergman discusses the Rollover as Business Startup Solution, or ROBS. He details how to use your retirement funds to start or invest in your own business.




In This Podcast

If you are looking to start your own business and you don’t have the capital, you have several options. Of course, you can head to the bank and apply for a loan, or seek assistance from the SBA. However, there is another way, if you have accumulated enough funds in your retirement account. The Rollover Business Startup Solution, or ROBS, will allow you to use those funds to invest in your own business. In fact, it’s the only way you can use more than $50,000 in retirement funds to open a business you will be personally involved in.

There’s no needless delays and paperwork applying for a loan. You simply need to create a business (it must be a C Corporation) and start a new 401(k) plan. You can then roll over your current retirement funds into the new plan and start your business. In fact, if you have an existing business, you can use those funds to make improvements or take care of other needs.

You must be mindful of the IRS rules when performing a ROBS. So long as everything is done by the book, you can get your new business up and running in no time. Of course, there is risk when using retirement funds for a project. You must ensure that the business will succeed, lest you risk your nest egg. Of course, there’s no guarantee! Listen to the podcast to learn just how to use your funds to fund your start-up.

Stay in Touch

We always appreciate our listeners and we hope you will continue to listen and spread the word. You can find AdBits on SoundCloud, YouTube or your favorite streaming platform. Thanks for listening and if you have any topics you want to see covered, give us a call @ 800.472.0646 today!

Join us next episode as Mr. Bergman discusses IRS Form 5500 and why every Solo 401(k) investor with $250,000 in total assets must fill it out!

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