Every scenario is unique, said Sullivan, but entrepreneurs with a surefire idea for a business start-up should be able to find financing on excellent terms on the merit of their ideas, saving themselves from the potential damage to their retirement accounts.
This Entrepreneurial Strategy Avoids Taxes, But It ROBS Retirements
May 18, 2018
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In lieu of financing a business with a ROBS, Mrs401k.com, an independent 401k Third Party Administrator, permits business financing via a no cost 401k loan of up to one half of the 401k account balance (not to exceed a $50,000 loan). The employee borrower pays a commercially reasonable rate of interest back into their own 401k account. We do not take a position on whether this is a good thing or a bad thing, we just permit it if the Plan Trustee allows it. Mrs401k.com works with all advisors and investment providers to setup and adminster Solo 401k Plans and Small Business 401k plans and is an approved software vendor with the U.S. Department of Labor to electronically file annual plan returns for the 401k plan.