A Smarter Way to Launch or Grow Your Business
ROBS (Rollovers as Business Startups) is a financing strategy that allows individuals to use funds from their pre-tax retirement accounts (like a 401(k) or traditional IRA) to start or buy a business without paying early withdrawal penalties or income taxes. Whether you’re starting a franchise, starting your own, expanding your business or buying an existing business, the ROBS program can be the solution or party of your funding solution.
Can ROBS Be Combined with Other Funding Sources?
Absolutely. One of the greatest benefits of the ROBS strategy is that it works well alongside other financing tools, especially SBA loans. Many entrepreneurs use ROBS to meet the equity injection requirement for an SBA loan. This approach strengthens your application by showing a personal financial commitment without taking on additional personal debt.
At Benetrends, we specialize in creating smart funding combinations, making sure that ROBS and other financing methods like SBA loans are structured correctly, fully compliant, and optimized for your goals.
What If the Business Doesn’t Succeed?
Like any investment, ROBS carries risk. If your business fails and the company’s value drops to zero, the portion of your retirement funds used to purchase stock in the business could be lost. However, any funds that weren’t rolled over remain untouched and protected.
Also worth noting—ROBS does not make you personally liable for losses, unless you’ve signed personal guarantees for loans like SBA financing.
Staying Compliant with ROBS Regulations
When done properly, ROBS is fully compliant with IRS and Department of Labor (DOL) guidelines. Benetrends, founded by the pioneer of the ROBS strategy, ensures that every step, from company formation to plan administration, aligns with current laws and best practices.
To remain compliant, your business must:
- Be structured as a C Corporation
- Establish a qualified retirement plan
- Use that plan to purchase stock in the company
From setup to ongoing documentation and reporting, compliance is key to keeping your ROBS structure intact.
Ongoing Support and Plan Administration
ROBS compliance doesn’t stop once the plan is in place. That’s why Benetrends offers end-to-end plan administration services that keep your business in good standing year after year. These services include:
- Annual IRS Form 5500 filings
- Plan documentation maintenance
- ERISA compliance management
With Benetrends handling the details, you’re free to focus on growing your business—not navigating red tape.
What Are the Costs?
ROBS is often more affordable than traditional business loans. Benetrends offers:
- A one-time setup fee of $4,995
- A monthly administration fee of $158
These fees cover complete plan design, compliance setup, documentation, annual filings, and continued support, providing peace of mind and long-term value.
Fuel Your Business with Confidence
ROBS gives entrepreneurs a way to invest in their dreams without borrowing from banks or giving up equity to outside investors. With the guidance and experience of Benetrends, you can take full advantage of this innovative funding option safely and confidently.
Want to learn more about how ROBS can work for you?
Contact Benetrends today to schedule a personalized funding consultation.
Wendy Skemer, Senior Funding Consultant
Contact Wendy: https://www.benetrends.com/wendy-skemer/