Menu Close

Discover how the ROBS 401(k) works

  • The only legal way to invest in a business you will work at with retirement funds
  • Use IRA or 401(k) funds with no tax or penalty
  • Exempted from the IRS prohibited transaction rules
  • Invest in yourself
  • Earn a salary
  • Gain investment diversification
  • Generate tax-free gains from the sale of the business

Find out how to start up your business with ROBS

Get started or learn more by calling one of our tax specialists at 1-800-472-0648

Our business hours are 9AM – 7PM EDT, M-F.
Read our Privacy Policy.

Advantages of the ROBS Solution

Checkbook IRA LLC

Save Money

The ROBS Solution is the only legal solution that will allow you to invest your retirement funds in a business you will be personally involved in without having to pay tax and or penalty on a retirement account distribution.

Checkbook IRA

Invest in Yourself

The ROBS solution allows you to invest your retirement funds in a business that will be actively run by you or a family member. As a result, you’re investing retirement funds in yourself rather than in Wall Street.

Checbook IRA LLC

Earn a Salary

To be a participant of a 401(k) plan, you need to be an employee of the business that adopted the plan. For many entrepreneurs, the ability to earn a salary is the reason they chose ROBS over the Self-Directed IRA.

How it works

The ROBS Solution allows entrepreneurs to use 401(k) plan funds to buy stock in a “C” Corporation, which is known as “qualifying employer securities.”

1

Establish a C Corp.

Establish a new C Corporation in the state the business will be operating. It must be a C corporation.

2

Adopt a 401(k) plan

The new C Corporation adopts a prototype 401(k) plan.

3

Fund the 401(k) plan

The new C Corporation adopts a prototype 401(k) plan.

4

Purchase stock stock

The 401(k) plan purchases the C Corporation’s newly issued stock at fair market value.

5

Purchase assets

The C Corporation utilizes the proceeds from the sale of stocks to purchase the assets for the new business.

6

Earn a salary

Earn a salary from the revenue of the business and personally guarantee any business loan.

How we’re different

Experience

Our tax and ERISA experts have helped over 23,000 clients invest $4.6 billion in alternative assets.

Prestige

Our founder, Adam Bergman, was a tax lawyer and is the author of 8 books on self-directed retirement plans.

Dedicated Support

In addition to tons of online resources, IRA Financial gives clients access to experienced specialists dedicated to your peace of mind.