A rollover for business startups (ROBS) is a financing solution that lets you start or purchase a business with your retirement savings without paying early withdrawal fees or tax penalties. These transactions are difficult and confusing, which is why we recommend using an experienced ROBS provider. We compare the best ROBS providers for startups below.
Best ROBS Provider: Guidant Financial
Guidant Financial topped the list because they complete more ROBS transactions each year than any other provider. It is also the only provider that offers free outside counsel to you before, during, and after your ROBS transaction is complete. It takes about two or three weeks to get funded, and the whole process starts with a free, no obligation consultation.
Top 7 ROBS Providers 2019
| Guidant | (Best Overall) Businesses that want the highest level of service including free legal consultations |
| FranFund | Entrepreneurs looking to fund a franchise with ROBS or ROBS + SBA loans |
| MySolo401k | Startups looking for the most affordable full service ROBS option available |
| Benetrends | Startups looking for the provider that has been successfully doing ROBS the longest |
| Pango Financial | Founders interested in exploring and using multiple sources for financing. |
| Catchfire Funding | Entrepreneurs who need assistance in selecting a business to purchase. |
| Business Funding Trust | Entrepreneurs who plan on being the only employees of their business |
How We Determined Which ROBS Provider Is the Best
ROBS providers help you set up a ROBS and maintain the monthly and annual reporting required for a ROBS, which can be confusing if you do it on your own. While all providers can help you through the transaction, the best ROBS providers differentiate themselves through their experience, support, fees, and the additional financing options they provide.
The criteria we use to determine the best ROBS provider includes:
- Setup fee: The initial cost of setting up the ROB.
- Maintenance fees: The ongoing costs for maintaining the ROBS in accordance with current tax law and regulations
- Support: The support business owners receive before and after the ROBS is active, in avoiding ROBS prohibited transactions, filing paperwork, and maintaining the plan
- Communication: The ease with which each provider could be reached by their clients in the event of questions
- Additional financing options: The overall access to capital that ROBS providers can offer businesses, and the cost of helping them apply
- Customer reviews: Reviews of current and previous customers of each provider
In an industry where most providers have similar offerings, Guidant stood out due to the level of support they offer their customers. They are the only provider that offers a free consultation with outside counsel before you sign up. Guidant also gives their customers more assurances during a potential audit than any other provider, by guaranteeing the use of outside counsel in the event of an audit. That kind of assurance is essential when you’re about to use your 401(k) to fund a new business.
Guidant: Best Overall ROBS Provider
Guidant is the best fit for most entrepreneurs looking for a ROBS provider because they complete more ROBS transactions each year than any other provider, and also offer more upfront support at a competitive price of $4,995. They are the only ROBS provider that offers a free outside counsel consultation before you sign up.
What Guidant Financial Offers
More than 1,600 small business owners use Guidant every year to complete a ROBS transaction, with fewer than 0.35% audited and no disqualifications. It offers a free initial consultation with outside counsel, a full ROBS setup, ongoing maintenance and IRS filings. If you need additional financing, it will work to help you apply and, if you sell the business, it will handle unwinding the ROBS.
Initial Support & Setup
Guidant is the only ROBS provider that offers every potential Guidant customer two one-hour sessions with an outside attorney to evaluate whether or not a ROBS is the right financing option. Once you have made a decision, Guidant Financial will do all the heavy lifting of setting up a ROBS, from establishing a C corporation to filing all of the appropriate paperwork, rolling over funds into the new 401(k), and ultimately funding your business in as little as two weeks.
Ongoing Support
Guidant Financial reviews your business on a regular basis to ensure that it is in compliance with current regulations. This includes setting up eligible employees, filing IRS Form 5500, and support in the event of an audit. Guidant is the only provider that guarantees in its contract that they will pay for outside counsel to help you through any audit of your ROBS retirement plan.
Additional Financing Offered
In addition to ROBS, Guidant helps their clients obtain financing for Small Business Administration (SBA) loans, unsecured loans, portfolio loans, and equipment leasing. For this service, you pay Guidant a $2,500 consulting fee to start working on your loan request. They will guide you through the application process and introduce you to lenders they have partnerships with.
Guidant is the only provider that offers a full refund of its consulting fee. If you do not get funded with Guidant’s help, it will reimburse the fee. However, if you decline a potential loan because you do not like the terms, it will keep the fee.
Support with Unwinding ROBS
If and when you sell your business, Guidant will make sure the retirement plan is closed down and rolled into an individual retirement account (IRA) account. It finalizes paperwork and files your last IRS Form 5500 for the year your business is sold. Typically, Guidant will charge you its monthly fee for a few months after the sale of your business so that it can finish up these tasks on your behalf, similar to Benetrends and FranFund.
Guidant Costs
Costs are an important component of any evaluation because it affects the amount of money that will be left for your business. Guidant costs are slightly higher than the other options on the list, but we think it is justified due to the level of support they offer. The extra cost, when compared to the other providers, is minimal and could be as little as $9 per month.
Guidant has two main costs with a ROBS 401(k) transaction:
- Setup fee: $4,995
- Ongoing maintenance fee: $139 per month for up to 10 employees; $3.33 per employee per month after 10
What Guidant Is Missing
Guidant is a great option to help you through the ROBS transaction, but its services are a little more expensive than the competition. It is also less integrated into the franchise community than some of the other ROBS providers we evaluated for this guide, like FranFund.
Guidant Financial Reviews
Guidant Financial generally has positive ratings. Users who gave positive Guidant Financial reviews cited its quality of customer support through the complex process. Users who gave critical Guidant Financial reviews said its fees were costly. Read more on our Guidant Financial reviews page.
How to Apply With Guidant Financial
With Guidant, you can get funded with a ROBS in two to three weeks. The process starts with a free consultation where you can ask all of your questions. Guidant then offers you two one-hour sessions, free of charge, with an outside counsel to decide if your personal situation merits a ROBS.
FranFund: Best ROBS Provider for Franchises
FranFund is the best fit for franchises looking for a ROBS because it is more ingrained into the franchise community than its competitors because it’s run by former franchise owners. Around 92% of its clients in 2018 were franchises and, for a fee of $4,795, it will work to get your ROBS set up.
What FranFund Offers
FranFund’s ROBS offering is similar to Guidant’s, but FranFund focuses mostly on franchise businesses. It offers lower overall costs and plenty of support from the moment you are looking to make a decision, through setting up, and ultimately unwinding your business when it is sold. It also offers additional financing options for your business in addition to ROBS.
Initial Support & Setup
Before you sign up, FranFund has a unique program called “the Safety Net Program” that helps you shorten the time it takes to go through the ROBS process, at no cost to you. This program guides you through the process of moving your funds into an IRA account before you start the ROBS. Having the funds in a tax-deferred IRA account enables you to get funded in as little as two weeks, which is similar to Guidant.
Ongoing Support
FranFund offers plenty of ongoing support once you complete the ROBS transaction, including the promise of outside counsel during an audit. While it does not explicitly outline this in its contract, it does promise verbally that it will provide you with outside counsel at no additional cost to you, if it is needed.
FranFund will also do all of the legwork and help you sign up eligible employees to your 401(k) plan. It will prepare and file your annual IRS forms, and it will work with you every step along the way to make sure you have your questions answered as they come up. Its ongoing support level is similar to Guidant’s, except that Guidant has audit help outlined in its contract.
Additional Financing Offered
FranFund helps you choose the right financing option for your franchise, including SBA loans, unsecured business loans, equipment financing, and securities backed financing. It will package the loan request and submit it to hand-picked lenders on your behalf. It charges a standard fee of $2,500 but, unlike Guidant, it doesn’t offer a refund.
FranFund also offers direct lending options through FastForward Capital. It offers conventional loans for mature franchise brands to fund existing franchise expansion. This makes them a good financial partner to fund your franchise with a ROBS, allowing you to come back later when you need capital to grow.
Support With Unwinding ROBS
If and when you sell your business, FranFund will handle the unwinding process of a FranPlan ROBS. You will typically be charged the ongoing maintenance fees until this process is completed. Your maintenance fee will cover most of the common unwinding scenarios, however, in some complex transactions, FranFund recommends outside help, similar to Pango Financial.
FranFund Costs
FranFund offers its services at slightly lower rates of $4,795 upfront for most customers than Guidant Financial. The standout component of their pricing is the large initial discount that it makes available to veterans. In addition to its setup fee, its ongoing maintenance fee of $130 per month is comparable to other providers we evaluated.
FranFund has two main costs with a ROBS 401(k) transaction:
- Setup fee: $4,795; $3,995 for veterans
- Ongoing maintenance fee: $130 per month
What the FranFund FranPlan Is Missing
FranFund does not guarantee the use of an outside counsel during an audit through its written contracts for the FranPlan. While it says it will provide this additional feature if it is needed, Guidant promises it in writing. Furthermore, its loan application consulting fee is nonrefundable unlike Guidant’s.
FranFund Reviews
FranFund generally has positive ratings. Users who gave positive FranFund reviews cited that its employees guided them through the process without problems. Users who gave critical FranFund reviews said its fees were costly and continued for longer than necessary. Read more on our FranFund reviews page.
How to Apply With FranFund for the FranPlan
You can start with the application process for a ROBS through FranFund by signing up online for a free consultation. It offers a Safety Net Program, which helps you move your retirement funds into a tax-deferred IRA account, at no cost. This will help you get funded in as little as two weeks.
MySolo401k: The Most Affordable ROBS Provider
MySolo401k is the right option if you want the most affordable provider because its upfront fees are the lowest at just $4,000 upfront, and its maintenance fee is free for the first year. MySolo401k have experienced compliance officers and attorneys to guide a ROBS transaction for all businesses and promise outside counsel when needed.
What MySolo401k Offers
MySolo401k provides the guidance needed to complete a ROBS transaction with the lowest costs and strong ongoing support. Its initial consultation, setup process, guidance, and ongoing support are comparable to its peers. It is only able to help with SBA loans for additional financing, however, due to its focus for businesses exclusively on ROBS.
Initial Support & Setup
MySolo401k will work with you before you become a customer, focused on understanding your needs and educating you about your options and the ROBS process. It does not, however, offer a consultation with an independent attorney like Guidant. MySolo401k will take you through the process of setting up a C corporation, moving your funds, and ultimately getting your company funded in as little as two weeks.
Ongoing Support
MySolo401k offers unlimited ongoing support from ROBS experts and attorneys. They handle all of your ROBS paperwork for you, including preparing and filing your Form 5500 and the addition of newly eligible plan participants.
Its audit guarantee is as strong as most other providers in the industry, promising that your plan will be compliant with the IRS and U.S. Department of Labor standards. However, this is promised on their website and isn’t guaranteed in the contract like it is with Guidant.
Additional Financing Offered
MySolo401k focuses on ROBS, but they also partner with third-party lenders that offer SBA loans. MySolo401k can, therefore, assist you with everything from finding an SBA-approved lender to closing the SBA loan by providing you with necessary documentation at no additional cost. It also offers retirement accounts like solo 401(k)‘s and Self-Directed IRAs. However, these are not used to invest in your small business.
Support With Unwinding ROBS
When you decide to sell the business MySolo401k will handle the process of unwinding the ROBS on your behalf and filing the final forms with the IRS. Similar to other providers like Benetrends and Guidant, this service is included in their ongoing maintenance fees.
MySolo401k Costs
MySolo401k is the least expensive provider we evaluated both when measured on initial fees and ongoing maintenance. It attains lower costs by saving money on marketing and believe that because there is little maintenance to be done in the first year, your maintenance should not start until your second year working with it.
MySolo401k has two main costs with a ROBS transaction:
- Setup fee: $4,000; $3,500 for veterans
- Ongoing maintenance fee: $899 annually for up to 10 participants; $75 annually for each additional participant; this fee is waived for the first year
What MySolo401k Financial Is Missing
MySolo401k offers a low-cost ROBS option that works closely with business owners to get funded. Unfortunately, because it does not offer financing options besides SBA loans, it loses some of the financing flexibility offered by other providers like Guidant, Benetrends, and Pango Financial.
MySolo401k Reviews
MySolo401k generally has positive ratings. Users who gave positive MySolo401k reviews cited the quality of the customer service and its efforts to educate clients. Users who gave critical MySolo401k reviews said it does not clearly state a cancellation policy. Read more on our MySolo401k reviews page.
How to Apply With MySolo401k
You can start the application process by filling out an online form that takes about 10 minutes. Once that is complete, MySolo401k representatives will reach out to you for the next step in the process, after that, you will typically receive funding in two to three weeks.
Benetrends Financial: Longest Track Record ROBS Provider
Benetrends Financial is the right provider for anyone looking for the most experience. This matters for a ROBS because of all the details required to be compliant with both the IRS and the Department of Labor. Benetrends is the pioneer of ROBS, charges $4,995, and has been facilitating rollovers for more than 30 years.
What Benetrends Financial Offers
Benetrends has never had its ROBS product, the Rainmaker Plan, disqualified in more than 30 years, and it completes about 1,200 ROBS transactions per year. Slightly less than 75% of its clients are franchisees, so it is another good option for franchise funding. It offers competitive pricing with similar services as its competitors.
Initial Support & Setup
Like the other providers we evaluated, Benetrends offers a free consultation with one of its financial professionals to assist you in making a decision on the best type of funding for your situation. However, you do not receive a consultation with an independent attorney like Guidant. Benetrends will set up the ROBS on your behalf from opening a C corporation to getting your business funded in two to three weeks.
Ongoing Support of Rainmaker Plan
Benetrends Financial offers a guarantee that its on-staff professionals and attorneys will help you through all matters of your audit without any additional costs. If your audit case becomes more complicated than it can handle, it promises to provide outside counsel at their expense, but it is not a guarantee written in your contract like Guidant offers. Benetrends believes that 95% of its clients can get through an audit without outside help.
Additional Financing Offered
Benetrends works with clients on a number of loan options that include loans for startups, SBA loans, equipment financing, and more. It will help you find a lender and then work with you through the process of getting your loan closed. Benetrends requires a $2,500 loan packaging fee to begin the loan application process, but it is reimbursed if it cannot get you a loan offer, similar to Guidant.
Support With Unwinding ROBS
Benetrends includes support for unwinding ROBS in the event that you decide to sell your business, similar to Guidant and FranFund. This includes all necessary procedures to close out the 401(k) and roll it out of the business as well as the final filing with the IRS. It has staff assigned to each client, who are available to answer any questions throughout the process.
Benetrends Financial Costs
Benetrends’ setup and ongoing fees are in line with FranFund and Guidant. The fees cover all of Benetrends’ services for as long as you are a paying client. You can cancel at any time with a 30-day notice, but Benetrends will no longer service your account at that time.
Benetrends has two main costs in a ROBS 401(k) transaction:
- Setup fee: $4,995
- Ongoing maintenance fee: $130 per month
What Benetrends Is Missing
Benetrends has the experience and can guide you through a ROBS as well as anyone. However, it is not any more affordable to set up a ROBS than Guidant or FranFund, and it does not guarantee you access to an outside counsel when you need it within your written contract.
Benetrends Reviews
Benetrends maintains an A+ rating with the Better Business Bureau and generally has positive reviews around the web, including from people who used both its Rainmaker Plan as well as its SBA loan packaging. You can read more on our Benetrends reviews page.
How to Apply With Benetrends Financial
You can apply online for a free consultation with Benetrends to make sure a ROBS with their Rainmaker Plan is the right choice for you. If you are ready to move forward, you will start the process of rolling over your retirement funds into your business, which typically takes two to three weeks.
Pango Financial: Best for Multiple Financing Options
Pango Financial offers a ROBS option to entrepreneurs that are considering multiple forms of financing. Its DreamSpark plan has an upfront cost of $4,000 and ongoing maintenance of $110 per month. It helps business owners explore funding options besides ROBS, even if it does not offer them.
What Pango Financial Offers
Pango Financial offers similar support and setup services to top providers like Guidant and FranFund but at a lower overall cost with its DreamSpark plan. It is experienced with using a 401(k) to start a business and handle most of the unwinding process in-house. From the initial consultation to funding, it has seen entrepreneurs get funding in as quick as 10 days.
Initial Support & Setup of Pango’s DreamSpark
Pango Financial provides you with a free consultation, during which they will work to understand your unique circumstances and explore your financing options. What makes them stand out is that it will explore options that it does not offer and its 10-minute application process. Your application is processed internally, and the paperwork for your C corporation can be available to the secretary of state’s office the same day.
Ongoing Support
Ongoing support offered by Pango Financial is similar to other providers. The fee covers preparing your form 5500, compliance testing, documentation maintenance, plan reconciliation, participant statement preparations, vesting and eligibility tracking. It has never had an audit directly related to the ROBS. However, in the event of a general audit, it will work with you to get all the proper paperwork but recommend using your own attorney.
Additional Financing Offered
Pango Financial offers guidance in selecting the right financing option for your business. This includes SBA and unsecured loans for which it offers help in applying for. It charges a total fee of $2,500 with $100 due before applying and $1,500 due when you receive pre-approval and decide to move forward.
Support With Unwinding ROBS
The level of support offered by Pango Financial when unwinding ROBS remains somewhat unclear, unlike other providers we evaluated. Many parts of the unwinding process are done internally and are covered by the fee. However, in some situations, it uses an external partner to handle part of the unwinding that may add additional costs. This is decided on a case-by-case basis.
Pango Financial DreamSparkCosts
In our comparison, Pango’s DreamSpark plan has a setup fee that is lower than most of the top providers on our list. The only reason it is not our least expensive option is that its ongoing maintenance is slightly higher than MySolo401k. However, although the fee is lower, it offers similar services to other providers.
Pango Financial has two main costs in a ROBS 401(k) transaction:
- Setup fee: $4,000
- Ongoing maintenance fee: $110 per month
What Pango Financial Is Missing
Pango Financial falls short in supporting the ROBS unwinding process, which can add additional costs if it is unable to do it entirely in-house. Furthermore, unlike Guidant, it does not offer legal counsel for audits and does not refund the consulting fees if you are unable to qualify for additional financing.
Pango Financial Reviews
Pango Financial has an A+ rating from the Better Business Bureau. Reviews from around the web are generally positive highlighting their expertise in the ROBS process and the quality of ongoing education.
How to Apply With Pango Financial for DreamSpark
The application with Pango Financial begins with an initial consultation during which it will help you determine if the DreamSpark plan is the best option for your financing. Then, you will complete its 10-minute application, with funding for your business available in as soon as 10 business days.
Catchfire Funding: Best for Assistance Selecting a Business
Catchfire Funding is helpful to potential business owners who aren’t sure what business it wants to purchase because Catchfire helps you identify a company. However, we recommend first checking out one of the previous providers on our list and using Catchfire Funding as a last resort, due to a lack of pricing information.
What Catchfire Funding Offers
Catchfire Funding offers help with ROBS transactions through its Self-Directed 401(k) Funding program. It’s not upfront about its costs, but the process appears to be similar to its competitors.
Ongoing Support
One thing that separates Catchfire Funding from its competition is that it’ll help you find the right business or franchise to buy or start. Catchfire Funding does not provide details on how much support it gives after the ROBS transaction is complete, but it appears to provide at least basic services, such as preparing and filing your 5500 form.
Additional Financing Offered
Catchfire Funding also offers SBA loans through Diamond Financial. Catchfire Funding is an affiliate of Diamond Financial, so it’ll receive a fee when your loan closes, but it’s unclear if it will affect your total cost.
Catchfire Funding Costs
Unfortunately, it’s unclear how much Catchfire Funding costs because it’ll only provide the information to prospective clients. It does offer a guarantee that if your ROBS either doesn’t go through within 90 days or if it fails an audit, it’ll reimburse you whatever fees you’ve paid to that point.
Catchfire Funding has two main fees associated with a ROBS:
- Setup fee: Unknown
- Ongoing maintenance fee: Unknown
What Catchfire Funding Is Missing
It’s not upfront about its process, ongoing support, or fees. It also doesn’t appear to offer any direct lending itself. While its ongoing guarantee is nice, it doesn’t guarantee the help of outside counsel at its expense.
Catchfire Funding Reviews
Catchfire Funding has an A+ rating with the BBB but has no reviews there. In fact, there are surprisingly few user reviews available for Catchfire Funding. Check out our user reviews of Catchfire Funding to learn more.
How to Apply With Catchfire Funding
To apply for startup financing with Catchfire Funding, you can fill out an online form to sign up for a free consultation. It’ll work with you to determine your options. If you move forward with a ROBS, then you can expect to be funded in three to four weeks.
Business Funding Trust: ROBS Provider for Owner-operators
Business Funding Trust is the right provider for entrepreneurs that plan on being the only employee of its business and have funding that is less than $250,000. The initial charge is $4,950, and it does not offer any ongoing maintenance, so there is no maintenance fee.
What Business Funding Trust Offers
Business Funding Trust offers a base plan for setting up ROBS for your startup. It provides you with a complete plan administration binder, which is sufficient for maintaining the plan with the help of your accountant. Once the ROBS transaction is completed its involvement is finished.
Initial Support & Setup
Business Funding Trust will work to educate you on the ROBS process and file all the appropriate paperwork. It will then employ its simple method for managing the ROBS once it is set up with the help of its plan administration outline, which includes sample forms and detailed instructions but, unlike other providers, it won’t manage it for you.
Ongoing Support
The only ongoing support offered by Business Funding Trust occurs in the event that you encounter the need to file a 5500 form with the IRS. In this event, it is available to complete paperwork on your behalf for $300. If you are audited, you will have to rely on your own legal counsel, unlike Guidant, which guarantees the help of legal counsel in the event of an audit.
Additional Financing Offered
Business Funding Trust only works directly with ROBS. They will, however, provide you with the necessary paperwork you need to apply for an SBA Loan. You will have to rely on the loan officer that is originating the loan to gather the remainder of the documents and complete the process, whereas other providers will work with you throughout the process.
Support With Unwinding ROBS
If you are selling your business, most of the work will have to be handled by you and any outside help you hire. Business Funding Trust will forward you the necessary documents and outline the steps and procedures for going through the process. However, it will not assist in any additional way, which the other providers will do.
Business Funding Trust Costs
The unique pricing structure of Business Funding Trust accommodates businesses that are going to be exempt from the IRS Form 5500. It also charges its setup fee after the ROBS setup process, allowing your business to pay it directly, and giving you the opportunity to claim a $1,500 tax credit over three years.
Business Funding Trust has two main costs in a ROBS 401(k) transaction:
- Setup fee: $4,950, due after setup, payable by the business
- Form filing fee: $300 per IRS Form 5500 filing
Unlike other providers, Business Funding Trust does not provide ongoing maintenance for your account, which it states is unnecessary if you are the only employee. This means that it doesn’t charge any ongoing fees and give you the opportunity to save money in the process.
What Business Funding Trust Is Missing
Their services are simplified and targeted at a very specific type of entrepreneur. In doing that, it has shed many of the ongoing support services in favor of simplicity and self-guided ROBS maintenance. Compared to our other ROBS providers, it offers fewer services, but it passes along the savings.
Business Funding Trust Reviews
Business Funding Trust has an A+ rating with the BBB. It has positive reviews around the web, citing its low fees and tailored solutions. On Trustpilot, it has 98% excellent reviews, and no negative customer reviews at this time.
How to Apply With Business Funding Trust
To start the ROBS set up with Business Funding Trust, you can get a consultation to understand more about its process and if it is the right choice for you. Afterward, it will work with you to get your business funded in as little as two weeks.
Alternatives to a ROBS
We have done our best to cover the best ROBS providers. However, we understand that ROBS are not the best choice for every entrepreneur. The risk of investing your retirement savings in a new venture is not for everyone. As an alternative, you should consider SBA loans, business acquisition, and startup funding options.
These are the best alternative to funding your startup:
- SBA loans: If you have good credit (680+) and need financing for your startup you should consider an SBA loan; SBA loans are typically easier for new entrepreneurs to qualify for than traditional bank loans but their still relatively difficult; read our guide on how to get an SBA startup loan for more information
- Financing to buy a business: If you are interested in funding a business acquisition, there are some options besides ROBS that are available to you; we put together the best option in our article How to Get a Loan to Buy a Business.
- Funding options for startups: There are many other options for funding your startup, and selecting the right one will depend largely on your situation; in our article, we outlined the 12 Best Ways to Fund Your Startup
The Bottom Line
In an industry where all providers offer a similar product, it is difficult to separate the providers by much. Most of them have similar fees and promise ongoing support to help you through your ROBS transaction, even through the difficult task of managing it.
However, Guidant has separated themselves through its expertise and level of service. It helps more business owners through the ROBS transaction every year than any other provider and offers outside counsel support at no additional cost. You can sign up for a free one-on-one consultation to get started with Guidant today.
Eric Schechterman, CFE
Why do you “select” comments to post? Is that true “reporting”
Laura Handrick
Hi Eric,
To be candid, we get a lot of spam comments and vendors pitching (and trying to get links) for their products. Therefore we tend to only allow comments that further the dialog in some way that helps our readers and is directly related to the topic. You can post other questions or comments on our forum, for additional insights. This comment (as an example) would normally have been deleted as it’s not related to the article topic “7 Best ROBS”, but I have a soft spot for CFEs, as I am one, and your question seemed sincere.
Laura, HR Staff Writer, ICFE
Carol Krueger
Very interesting article. But I would like more information, please. There are nuances that I do not understand, for example: how to Apply With Business Funding Trust or What Business Funding Trust Is Missing.
Dennis Shirshikov
Hi Carol,
Thank you for asking the question.
Business Funding Trust is a ROBS provider that focuses exclusively on businesses that do not plan to hire any employees.
If this describes your business, you should also know that business funding trust will not handle the majority of the paperwork, instead they will provide you with a information on how to complete the process mostly yourself, but will be available to answer any questions.
This is largely the reason for their reduced overall fees, to apply with them, simply click the link in the article, and you will be taken to their site.
They are very responsive via phone, email, and their online application typically getting back to you within a day or two.
Thanks for asking,
Dennis Shirshikov
Louis
Do i have to continue the yearly administrative fee or can I do it myself after the rollover has been done.
Jeff White
Hi Louis!
Part of the complication in using a ROBS is setting it up, but the other difficult part can be correctly abiding by the rules after you’ve received the money. You could technically do it by yourself, but you’ll need to be confident that you can fill out the annual 5500 form, know when employees become eligible, and have a system in place to notify eligible employees of their rights within weeks of them becoming eligible. If you feel comfortable in those things and think you understand it then it’s not required you use a provider. However, to prevent your business from making a mistake we recommend using an experienced ROBS provider.
Best,
Jeff
Krista
Thanks for your objective article, Jeff. Do you have any similar information/research on Pango Financial?
Jeff White
Hi Krista!
Currently we haven’t done a complete write-up on Pango, but we’ll include it to our list of providers to consider in the future.
Best,
Jeff
Alex Rowzani
want more info please
Jeff White
Hi Alex!
Thanks for your inquiry into a ROBS! Essentially, a Rollover for Business Startups is a great way to fund a new business, the purchase of business assets, or a franchise. It helps you rollover your current retirement funds into a tax deferred account that gives your business full access to the funds because the new retirement account buys shares of the business. To learn more you should check out our ROBS ultimate guide.
Best,
Jeff