The best ROBS providers can get you funding for your business in under three weeks. They should also have a combination of low fees, excellent customer service, audit protection, and legal support. Fee structures often vary depending on the size of your company, so we’ve selected providers with competitive pricing for both smaller and larger businesses.
Here are our seven picks for the best ROBS providers:
- Guidant Financial: Best overall for customer service and comprehensive legal and audit support
- My Solo 401k Financial: Best for businesses with fewer than 30 plan participants
- Pango Financial: Best for veterans, first responders, and simple ROBS transactions
- Business Funding Trust: Best for simple fee structure and lower long-term costs
- Benetrends: Best for fast funding speeds for nonfranchise owners
- FranFund: Best for expertise in franchises
- IRA Financial Group: Best for flexible minimum balance requirements
Looking for a free business consultation session? Checkout Guidant Financial and see if they are the right ROBS provider for your business. |
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Best ROBS Providers At a Glance
Setup Fee | Monthly Maintenance Fee | Minimum Required Balance | Funding Speed | Legal/Audit Protection | Estimated Value of Legal Support | |
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$4,995 | $149+ | $50,000 | 3 weeks | Yes; internal and external | Up to $5,000+ | |
$3,000 | $30,000 | 2 to 3 weeks | Limited | $500 | ||
$3,995 | $110 | $30,000 | 2 to 3 weeks | Limited | $300 | |
$4,950 | $0 | $50,000 | 2 to 4 weeks | Not stated | $0 | |
$4,995 | $155 | $45,000 | 10 days | Yes | $1,000 | |
$4,795 | $155 | $50,000 | 10 days | Yes | $1,000 | |
$3,500 | $100 | $30,000 recommended | 2 to 3 weeks | Yes | $500 | |
Guidant Financial: Best Overall for Customer Service and Comprehensive Legal & Audit Support
Rates & Terms | |
Initial Setup Fee | $4,995 (10% discount for veterans) |
Monthly Maintenance Fee | $149+ |
Funding Speed | As fast as 3 weeks |
ROBS Services Provided |
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Legal Support |
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Audit Protection | Yes; full audit protection covers costs of legal representation if audited |
Qualification | |
Minimum Required Balance | $50,000 |
Why We Like Guidant Financial
Guidant Financial is one of the most expensive providers in our guide in terms of the combination of initial set-up fees and monthly recurring costs. However, 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 IRS or United States Department of Labor (DOL), Guidant Financial will cover all costs associated with representing your business. Given an 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.
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 if you want 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
Rates & Terms | |
Initial Setup Fee | $3,000 |
Monthly Maintenance Fee |
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Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Yes but may be limited |
Audit Protection | Yes but may be limited |
Qualifications | |
Minimum Required Balance | $30,000 but may vary |
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 to consider if you have a smaller business with around 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 401(k) and IRA business funding, as well as a single dedicated compliance offer 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.
Pango Financial: Best for Veterans, First Responders & Simple ROBS Transactions
Rates & Terms | |
Initial Setup Fee | $3,995 |
Monthly Maintenance Fee | $110 |
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Limited in-house support |
Audit Protection | Limited; provides assistance to your accountant or certified public accountant (CPA) |
Qualifications | |
Minimum Required Balance | $30,000 but can vary |
Why We Like Pango Financial
Pango Financial’s ROBS product is called the DreamSpark plan, and we recommend it as a good option 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 offer 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.
Business Funding Trust: Best for Simple Fee Structure and Lower Long-term Costs
Rates & Terms | |
Initial Setup Fee | $4,950 |
Monthly Maintenance Fee | $0 |
Funding Speed | 2 to 4 weeks |
ROBS Services Provided |
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Legal Support | None mentioned |
Audit Protection | None mentioned |
Qualifications | |
Minimum Required Balance | $50,000 |
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 Trust Funding, 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 do still have the option of having Business Trust Funding 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 utilize.
To learn more or to apply, head over to the Business Funding Trust website where you can contact the company by phone or email.
Benetrends: Best for Fast Funding Speeds for Nonfranchise Owners
Rates & Terms | |
Initial Setup Fee | $4,995 ($500 discount available for veterans) |
Monthly Maintenance Fee | $155 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
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Legal Support | Yes |
Audit Protection | Yes, audit shield protection guarantees compliance if you adhere to terms and conditions |
Qualifications | |
Minimum Required Balance | $45,000 but may be flexible |
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.
FranFund: Best for Expertise in Franchises
Rates & Terms | |
Initial Setup Fee | $4,795 (discounts available for veterans) |
Monthly Maintenance Fee | $155 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
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Legal Support | Yes, internal and external support offered |
Audit Protection | Yes, internal and external counsel available |
Qualifications | |
Minimum Required Balance | $50,000 |
Why We Like FranFund
FranFund’s ROBS product goes by the name FranPlan. It specializes in franchises and offers a way for you to start the process risk-free with its SafetyNet option. SafetyNet works by allowing you to change your mind about the ROBS process before it’s finalized, essentially allowing you to get a head start on moving your money at no cost.
With FranFund, you’ll work with an organization that has an excellent track record of compliance. Its ROBS plans have less than a 1% audit rate, with no plan having ever been disqualified.
You can schedule a free consultation on the company’s website to learn more about whether this is a good fit for your needs. FranFund also offers other financing options, including SBA loans, equipment leasing, payroll services, payment processing, and business insurance.
IRA Financial Group: Best for Flexible Minimum Balance Requirements
Rates & Terms | |
Initial Setup Fee | $3,500 |
Monthly Maintenance Fee | $100 |
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
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Legal Support | Yes, tax and ERISA support offered |
Audit Protection | Lifetime IRS audit support |
Qualifications | |
Minimum Required Balance | None but $30,000 is recommended |
Why We Like IRA Financial Group
IRA Financial Group, unlike many other ROBS providers, does not have a hard minimum requirement for your ROBS. Rather, it can review scenarios on a case-by-case basis to determine if the costs are excessive in relation to the amount you wish to transfer. For this reason, we’ve picked it as a good option if you have a smaller balance and want to get more flexibility in rolling over fewer funds.
It provides many of the same ROBS setup services as other companies. Some examples are listed below, but it is not an all-inclusive list, and you should refer to the provider’s website for more details:
- Creation of one C-corp including payment of filing fees
- Filing of article of incorporation with the applicable state
- Application for a corporation employer identification number (EIN)
- Generation of C-corp requirements, including resolutions and minutes
- Adoption of 401(k) plan
- Appointment/designation of trustee and beneficiaries
- Tax and ERISA support
- Access to tax specialists for IRS form 5500
- Audit support
One thing to note is that while IRA Financial does provide audit support, it may be limited to simply supporting your own company’s accountant or CPA. As a result, it is designed to be used in conjunction with your own company’s tax and legal resources.
You can head over to the IRA Financial website to complete an online application or to schedule a free consultation to learn more about its products.
How We Chose the Best ROBS 401(k) Providers
We chose the best ROBS 401(k) providers based on the following criteria:
- Setup and recurring maintenance fees
- 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
Although a ROBS can give you tax-free and penalty-free access to your retirement accounts, it usually takes two to three weeks to complete the process. Most providers also require you to have at least $50,000 to be eligible for a ROBS. If you need to get funding more quickly or don’t have a large enough balance to qualify, you can consider the following alternatives in addition to our tips for how to get a small business loan:
- 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.
- Small Business Administration (SBA) loan: This is a good option for businesses that have good credit and don’t need funding quickly. SBA loans can take between one and two months to fund but can offer low interest rates. Learn more in our guide on SBA loan types, rates, and requirements.
- Personal loan for business purposes: If you’re unable to get a business loan but have good personal credit and income, this can be a good alternative to fund your business venture. See our list of the best personal loans for business funding to view providers with low rates and flexible loan terms.
Frequently Asked Questions (FAQs)
A ROBS could be a good idea if you have a large amount of retirement funds and do not want to take out a loan. It can also be a good option if you are unable to get approved for financing elsewhere. A ROBS gives you tax- and penalty-free access to your own retirement funds, so it does not carry many of the typical loan requirements such as credit score, revenue, or time in business.
A ROBS, short for rollover for business startup, allows you to access the cash in your personal retirement accounts tax-free and penalty-free to fund a new or existing business venture. You’ll typically need at least $50,000, and most personal retirement accounts are eligible. Learn more about how a ROBS works and how to choose a provider in our ultimate guide to ROBS transactions.
You may have to pay taxes and early withdrawal penalties if you complete a ROBS but end up not using the funds for a qualifying business venture. If you’re concerned this might happen, you can consider other types of startup business loans instead.
Bottom Line
With a ROBS, you can access your retirement accounts without any tax or early withdrawal penalties. Although you’ll pay fees to a ROBS provider for walking you through the process, a ROBS is not a loan, so you won’t be paying any interest charges like you would on a traditional loan. A ROBS is a complex transaction, so you should consider the potential value-add of services such as audit and legal assistance in the event you get audited.