7 Best Rollover for Business Startups (ROBS) Providers

While a ROBS can be an excellent way to access your retirement savings tax- and penalty-free, it can be a complex process that may lead to hefty fines and penalties if done incorrectly. The best ROBS providers, however, offer guidance and support services to prevent that from happening. Support services can vary but typically include a combination of legal guidance and audit protection.

Since the best ROBS provider will be based on your unique circumstances, we’ve selected a range of providers with varying pricing structures, eligibility criteria, and services offered. Here are our seven picks for the best ROBS providers:

• Guidant Financial: Best overall for service, support, and protection
• My Solo 401k Financial: Best for businesses with fewer than 30 plan participants
• IRA Financial Group: Best for flexible minimum balance requirements
• Business Funding Trust: Best for lower long-term costs
• Pango Financial: Best for simple ROBS transactions
• FranFund: Best for expertise in franchises
• Benetrends: Best for fast funding speeds for non-franchise owners

Best ROBS 401k Providers at a Glance

Guidant Financial: Best Overall for Service, Support & Protection

Why We Like Guidant Financial

Guidant Financial is one of the most expensive providers in our guide in terms of the combination of initial setup fees and monthly recurring costs. However, you get what you pay for—it offers a wide range of services and benefits that can end up saving you an even greater amount of time and money.

For example, in the event of an audit by the Internal Revenue Service (IRS) or Department of Labor (DOL), Guidant Financial will cover all costs associated with representing your business. Given the average hourly cost of hiring your own attorney at $200 to $400 per hour, this could easily provide you with more than $5,000 in savings alone. These potential savings are what make it our top pick for comprehensive legal and audit support.

Guidant Financial will also cover the costs associated with consulting with an outside, independent attorney to review your transaction. This can help ensure compliance and allow you to obtain additional support and guidance.

Given the complexity of a ROBS transaction and the potential monetary penalties for overlooking regulatory requirements, Guidant Financial is an excellent option to ensure that your ROBS plan is done correctly and that you have the support and protection in place in the event of an audit.

Visit the Guidant Financial website to learn more or to get the process started. There, you can schedule an appointment and a free consultation session to see if a ROBS is the right choice for your business. The provider also provides a high level of service to walk you through the process, providing a money-back guarantee if you’re unsatisfied.

My Solo 401k Financial: Best for Businesses With Fewer Than 30 Plan Participants

Why We Like My Solo 401k Financial

My Solo 401k Financial charges the lowest initial setup fee and has the second lowest monthly recurring maintenance fee of the providers in our guide. Its pricing, however, only covers up to 10 plan participants without additional charges being incurred. For that reason, we’ve selected it as the best provider for a smaller business with fewer than 30 plan participants. Once the number of participants grows larger, it may be more cost-effective to choose another ROBS provider.

Another potential downside is the fact that its audit and legal support network is not as extensive as other providers on our list. It offers the services of a single Harvard Law attorney who specializes in 401k and IRA business funding and a single dedicated compliance officer with over 18 years of experience.

My Solo 401k Financial hosts a daily live call via Zoom where you can ask questions to learn more about the company’s products. To join this webinar, head over to the My Solo 401k Financial website for instructions, where you’ll also have the ability to submit an application to get the process started.

IRA Financial Group: Best for Flexible Minimum Balance Requirements

Why We Like IRA Financial Group

While most ROBS providers require a minimum balance of $50,000, IRA Financial Group has no set minimum. For this reason, it can be a good fit for business owners who may not have sufficient funds in their retirement accounts but still want to utilize a ROBS to get tax- and penalty-free access to those funds.

That said, it’s important to weigh the pros and cons of doing so, as the costs incurred for conducting a ROBS with a small balance may mean you could get more bang for your buck with alternative financing methods.

With IRA Financial, you can get several value-added perks. For example, the company offers an HSA and Coverdell account for one year, valued at $920. You can also get up to $1,500 in total tax credits over a period of three years and potentially get a $5,000 start-up tax credit to reduce the effective cost of setting up a 401(k) plan down to $0.

Other ROBS services provided include the following:

• C Corporation setup, including articles of incorporation and EIN
• Preparation and filing of IRS Forms
• IRS-approved 401(k) plan documents
• IRS opinion letter
• One-on-one tax-free income and stock sale gains optimization
• BOI reporting with FinCEN
• Access to educational webinars, podcasts, and newsletters
• IRS audit guarantee

To begin the process, chat with an expert, or schedule a free consultation, visit the IRA Financial Group website.

Business Funding Trust: Best for Lower Long-term Costs

Why We Like Business Funding Trust

If you’re looking for a ROBS solution that has the lowest long-term costs, you should strongly consider Business Funding Trust, which is the only provider in our guide with no monthly recurring fees. It can also provide you with a federal tax credit of up to $1,500, further reducing the effective cost of the rollover.

It charges no monthly maintenance fees because it provides you with a no-cost alternative to the traditional third-party administration of your plan. This comes in the form of an administration kit containing instructions on how you can maintain your ROBS in compliance with tax, federal, and state regulations. If you require additional assistance, you still have the option of having Business Funding Trust walk you through the process for an additional fee.

However, it offers little to no legal support or audit assistance. Its team consists of a pension attorney, a retirement plan specialist, and a corporate attorney, but otherwise makes no mention of services that you yourself can use.

To learn more or to apply, head over to the Business Funding Trust website where you can contact the company by phone or email.

Pango Financial: Best for Simple ROBS Transactions

Why We Like Pango Financial

Pango Financial’s ROBS product is called the DreamSpark plan, and we recommend it if you have a simple rollover transaction. This is because Pango Financial’s legal and audit services are not as comprehensive in coverage as other providers in our guide. With that being said, Pango Financial does have an online customer forum where business owners can share advice with one another, something that not many other providers offer.

Other services that are unique to Pango Financial include registered agent services for the first year, an online instructional guide, and an online status checker. A money-back guarantee is also provided, and it states that you can be entitled to a refund of the setup fee if you do not receive all the services you were promised in the engagement agreement.

To submit an application, visit the Pango Financial website. There, you can also request a risk-free initial consultation to determine whether a ROBS might be right for you.

FranFund: Best for Expertise in Franchises

Why We Like FranFund

FranFund’s team has the knowledge and expertise to help a wide range of businesses complete a ROBS. However, working with franchises is its specialty, as it has a history of working with the nuances involved with this type of business structure.

In addition to fast funding speeds, a notable feature offered by FranFund is its SafeNet program. While most ROBS programs take 2 to 3 weeks to get access to funding without the ability to undo funds transfers, FranFund allows you to move funds ahead of time into an IRA pending the completion of the other typical requirements for a ROBS. If you decide not to finalize the ROBS, SafetyNet allows you to keep the funds in the IRA without having to reverse the transaction or initiate a refund.

Finally, like most ROBS providers, FranFund has an impeccable audit trail. Historically, less than 1% of its plans have ever been audited by the IRS or DOL, with no plans ever having been disqualified.

Business owners interested in a ROBS with FranFund can visit the company’s website to submit an application. You can also schedule a free consultation and review its other financing options, which includes SBA loans, equipment leasing, payroll services, payment processing, and business insurance.

Benetrends: Best for Fast Funding Speeds for Non-franchise Owners

Why We Like Benetrends

If you need funding quickly, Benetrends is a good option as it has one of the fastest funding speeds on our list. Although it may appear to have similar funding speeds to FranFund, Benetrends typically funds more quickly for non-franchise owners. FranFund, by comparison, specializes in franchises but has a slower average funding speed for other types of businesses.

In addition to getting your funds quickly, you can rest assured that your plan will be fully compliant with IRS and DOL requirements. Benetrends has an excellent track record of this, as it has never had a plan out of compliance in over 40 years of operation. For additional peace of mind, however, Benetrends does offer audit protection and legal services in the event of an audit. Ongoing support is also provided to ensure continued compliance.

Benetrends doesn’t outsource its administration services and keeps everything in-house to ensure you consistently receive excellent service levels. It also offers other products and services, such as startup loans, SBA loans, equipment leasing, and lines of credit.

To get started, you can schedule a free consultation or submit an online application on the provider’s website.

How We Chose the Best ROBS Providers

We chose the best ROBS 401k providers based on the following criteria:

• Setup and recurring maintenance fees
• Ease of transaction process
• Extent of legal and audit support
• Money-back guarantees offered
• Track record of compliance with regulatory requirements
• Ongoing compliance support
• Funding speed
• Customer reviews and ratings
• Minimum required rollover amount

Alternatives to a ROBS

In the event that you don’t qualify for a ROBS or are simply exploring all of your financing options, here are some alternatives to consider:

• 401(k) financing: If you have a 401(k) but don’t have a sufficient balance for a ROBS, you can still use it as collateral to get funding. This can include using a loan against the account or withdrawing from the retirement account. You can read more about this in our guide on how to use a 401(k) to start or buy a business.
• SBA loan: For businesses with strong credit history, SBA loans offer lower interest rates in comparison to other small business loans and have a variety of loan programs. While disbursement can be a longer process, it’s a good option for qualified businesses. You can learn more in our guide on SBA loan types, rates, and requirements.
• Personal loan for business purposes: For businesses that are ineligible for traditional financing but have good personal credit and income, a personal loan can be used for business purposes. There are few funds restrictions, although loan amounts may be lesser than standard business loans. See our list of the best personal loans for business funding to view providers with low rates and flexible loan terms.
• Angel investors: In exchange for equity in your company, angel investors can provide seed money to startups with limited resources. There is no repayment obligation, like financing with a traditional loan, and it typically has a less formal process. To learn more, read our guides on the pros and cons of angel investors funding your business and how to raise angel funding.
• Venture capital: Similar to angel funding, obtaining funding from venture capitalists provides a debt-free financing option, where ownership stakes can be offered in exchange for funding. Our articles on what venture capital is and how to raise venture capital can help you determine if the ROBS alternative fits the bill.
• Friends and family loan: Sourcing funds from friends and family is often less formal and can offer favorable interest rates and loan terms. To learn how to approach them to help finance your business, read our guide on raising money from friends and family.

Frequently Asked Questions (FAQs)

What are the benefits of getting a ROBS?

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How do you qualify for ROBS?

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What if I do a ROBS but change my mind about starting a business?

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Bottom Line

The best ROBS providers should offer services that support a ROBS transaction, including tax or legal advice, low startup fees, and audit assistance. With a ROBS 401k provider, you can set up a ROBS and access your retirement accounts without any tax or early withdrawal penalties. Since a ROBS can be a complex transaction, you’ll want to work with a provider that can assist with the process and help you with your business needs.