Questions to Ask when Choosing a 401(k)/IRA Business Funding Company

Post Date: October 1, 2019
5 Legal Questions to Ask Before You Start a Business


So you’ve made the decision to purchase a business or franchise, and you think you’d like to fund it using your retirement plan? Congratulations!

That’s a wise choice for funding a business. You can secure funding fast, there are no loan payments, you can pay yourself a salary from the start, and the list goes on! Now, the question is, “What company should I choose to help me do this?”

While there are a few good companies out there who handle this type of funding, it is critical you choose the best one for your needs. Here are some questions to consider asking prospective companies so you can make the right choice:

  1. How long have you been providing this service?
  2. Do you offer other retirement plans if needs change? Are there any additional costs?
  3. What does the cost include/not include?
  4. Besides the cost to set up the plan, what other setup or ongoing costs will I incur?
  5. What amount and percentage of the corporation do I have to purchase for my personal investment?
  6. What are the specific “retirement administration and consulting certifications” of the people I will have unlimited access to for ongoing support?
  7. Do you work with CPAs that understand and assist clients with their ROBS plans?
  8. What are the downsides and risks of structuring funding this way, and how do you minimize those risks?
  9. What is your guarantee and what does it cover? What are the limitations of the guarantee?
  10. Is your company Better Business Bureau accredited? What is your BBB rating?
  11. Are any of your retirement plan, legal or corporate services outsourced?
  12. Do you have an in-house ERISA attorney as an employee or simply outside counsel?
  13. Can you provide references of current clients who have utilized your 401(k)/IRA Rollover Funding plan?
  14. What do you do when the profits of the business exceed the sheltering aspects of the retirement plan to avoid double taxation of a C corporation?
  15. What other services do you offer to specifically help me manage my business or reduce administrative headaches?


With these questions answered, you will have the vital information to help you choose the funding provider that works best for you.

At Benetrends Financial, we have answers to all these questions – and more.  For over 35 years., we have made it our primary goal to help entrepreneurs succeed, not only with funding, but with other services like insurance, fidelity bonds, legal services and more.  We are with our clients for the life of their business.  To learn more, schedule a free consultation or see if you pre-qualify.

ROBS Funding Guide
Categories: Blog | ROBS

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