Self Directed 401K Rollover (ROBS)

Self Directed 401k Rollover (ROBS)

Use eligible retirement funds to start, buy, or grow a business without taking on a traditional loan or paying interest, when structured properly under IRS compliance rules.

Program Rates & Terms

• Loan Type: Not a loan
• Interest: No interest payments
• Funding Amount: Typically requires $50,000+ in eligible retirement funds
• Setup Fees: Estimated $3,000 to $5,000 depending on provider
• Ongoing Administration: Estimated $100 to $150 per month
• Repayment: No traditional repayment schedule

Qualification Guidelines

• Credit: Not required
• Income: Not required in many cases
• Business Stage: Startup eligible
• Retirement Funds: Must have eligible 401(k), IRA, or qualified retirement funds
• Role Requirement: Owner must generally be an active employee of the business
• Compliance: Must follow IRS and plan administration rules carefully

Required Documents

• 401(k), IRA, or eligible retirement account statement
• Business formation documents
• C-Corporation setup or conversion documents
• Retirement plan documents
• Rollover authorization forms
• Completed application or consultation request

Best Fit For

• Entrepreneurs starting a new business
• Business buyers purchasing an existing company
• Franchise buyers needing startup capital
• Business owners who want to avoid debt and interest payments
• Individuals with sufficient eligible retirement funds who want to invest in their own business

Key Insight

A Self Directed 401k Rollover, commonly known as ROBS, can be a powerful startup funding strategy because it allows eligible retirement funds to be used for business ownership without creating a traditional loan. However, it must be structured and maintained properly to stay compliant with IRS rules, plan requirements, and ongoing administration standards.