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401k Rollover for Business Startups (ROBS) by Guidant Financial

401k Rollover for Business Startups (ROBS) by Guidant Financial

The ROBS structure isn’t new — in fact it’s been an option for years — but many financial advisors and stock brokers aren’t aware of these investments because they don’t provide sufficient profit for their institutions. Essentially, you’re investing in yourself. Without loan interest to pay, you can make money sooner rather than later. And unlike the stock market this is an investment you can control. This tried-and-true structure is a fast, legal funding option that’s been in use since the Employee Retirement Income Security Act became a law in 1974.

7/10

Cost
20% Complete
Low High
Effort to Apply
30% Complete
Easy Difficult
Funding Speed
40% Complete
Months Minutes
Repayment Terms
90% Complete
Months Years

Bottom Line

If you have at least $50,000 in a rollable retirement account, this could cost significantly less than other lending options.

Pros

ROBS is a unique product that allows you to borrow against your own rollable retirement account. With no interest, you will be able to pay yourself back when you want. Essentially, you're investing in yourself.

Cons

You must have a C-Corp. You must have at least $50,000 in pre-tax funds in your 401k, 403b, Keogh, TSP, SEP, or Traditional IRA. Monies in a Roth IRA are unavailable. There is a $4,995 service fee.

Qualification requirements

Rollable Retirement Account

Must have at least $50,000 in a rollable retirement account.

Qualified Account Types

Rollable, pre-tax funds in your 401k, 403h, Keogh, TSP, SEP, or Traditional IRA retirement accounts. Cannot fund from a Roth IRA.

C-Corp Requirement

Guidant’s ROBS structure exclusively utilizes a C Corporation (C Corp.) business structure to meet the compliance requirements of ERISA and Internal Revenue code.

Cost
$4,995 Service Fee
Repayment Duration
N/A
Funding Amount
$50,000 minimum, up to 100% of Rollable Account Balance
Funding Speed
3 Weeks
Application
All digital

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