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 extensive legal and audit support
- My Solo 401k Financial: Best for businesses with fewer than 30 plan participants
- IRA Financial Group: Best for flexible minimum balance requirements
- Pango Financial: Best for veterans, first responders, and simple ROBS transactions
- Business Funding Trust: Best for no recurring fees and lower long-term costs
- Benetrends: Best for fast funding speeds
- FranFund: Best for expertise in franchises
Best ROBS Providers At a Glance
Setup Fee | Monthly Maintenance Fee | Minimum Required Balance | Funding Speed | Legal/Audit Protection | Estimated Value of Legal Support | |
|---|---|---|---|---|---|---|
 | $4,995 | $149 | $50,000 | 3 weeks | Yes; internal and external | Up to $5,000-plus |
 | $3,000 | $30,000 | 2 to 3 weeks | Limited | $500 | |
 | $3,500 | $100 | $30,000 recommended | 2 to 3 weeks | Limited | $500 |
 | $3,995 | $110 | $25,000 | 10 to 15 days | Yes | $1,000 |
 | $4,950 | $0 | $50,000 | 2 to 4 weeks | Not stated | $0 |
 | $4,995 | $145 | $45,000 | 10 days | Yes | $1,000 |
 | $4,795 | $145 | $50,000 | 10 days | Yes | $1,000 |
Guidant Financial: Best Overall for Customer Service and Extensive Legal & Audit Support
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Rates & Terms | |
Initial Setup Fee | $4,995 (10% discount for veterans) |
Monthly Maintenance Fee | $149 |
Funding Speed | 3 weeks |
ROBS Services Provided |
|
Legal Support |
|
Audit Protection | Yes; full audit protection covers costs of legal representation if audited |
Qualifications | |
Minimum Required Balance | $50,000 |
Why We Like Guidant Financial
Although Guidant Financial has one of the highest setup and recurring maintenance fees on our list, it also provides some of the most comprehensive audit and legal support services. Those alone can save your business a significant amount of time and money in the event your ROBS is audited by the IRS or United States Department of Labor (DOL).
To illustrate the potential value-add, hiring an attorney on your own could come at a cost of around $200 to $400 per hour. Since Guidant Financial provides a money-back guarantee for its services along with audit protection that covers all associated legal representation costs, this could easily provide you with more than $5,000 or more in savings.
Guidant Financial’s website states that it completes more ROBS transactions than any other company, so you’ll be partnering with a company that has a high level of knowledge and expertise. You’ll get a dedicated account manager and compliance reviews from its in-house attorneys. It also offers an outside independent attorney to review your plan at no additional expense to you.
In addition, it provides free consultation sessions. You can visit its website to schedule an appointment to learn more about whether a ROBS is the best fit for you.
My Solo 401k Financial: Best for Businesses With Fewer than 30 Plan Participants
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Rates & Terms | |
Initial Setup Fee | $3,000 |
Monthly Maintenance Fee |
|
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
|
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 individual retirement account (IRA) business funding as well as a single dedicated compliance offer with nearly 20 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
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Rates & Terms | |
Initial Setup Fee | $3,500 |
Monthly Maintenance Fee | $100 |
Funding Speed | 2 to 3 weeks |
ROBS Services Provided |
|
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 certified public accountant (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.
Pango Financial: Best for Veterans, First Responders & Simple ROBS Transactions
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Rates & Terms | |
Initial Setup Fee | $3,995 (20% discount for veterans and first responders) |
Monthly Maintenance Fee | $110 |
Funding Speed | 10 to 15 days |
ROBS Services Provided |
|
Legal Support | Yes |
Audit Protection | Limited; provides assistance to your accountant or CPA |
Qualifications | |
Minimum Required Balance | $25,000 |
Why We Like Pango Financial
Pango Financial’s ROBS product is marketed as the DreamSpark Plan. Although at face value it is not the cheapest in our guide, it can save you more money if you are a qualifying veteran or first responder, thanks to its 20% discount.
With that being said, it may also be a better pick for simple ROBS transactions where the potential for questions or complex matters is reduced. This is because its audit and legal support services aren’t as comprehensive compared to other providers in our guide. It does, however, provide an online customer forum where you can seek advice and guidance from other business owners.
Audit protection comes in the form of assisting your CPA with questions. However, you’ll be expected to take the lead if selected for an IRS audit, something you should consider before you choose a ROBS provider.
By paying the initial setup fee and ongoing maintenance fee, you’ll get the following ROBS services. Note that this is not a comprehensive list, and you can visit the Pango Financial website for more information:
- Registered agent services for the first year
- Online guide for your plan setup
- Business valuation services
- Creation of your C-corp, including filing fees
- Application for a corporate EIN
- Stock certificates and ledger
To submit an application, visit the Pango Financial website.
Business Funding Trust: Best for No Recurring Fees and Lower Long-term Costs
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Rates & Terms | |
Initial Setup Fee | $4,950 |
Monthly Maintenance Fee | $0 |
Funding Speed | 2 to 4 weeks |
ROBS Services Provided |
|
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 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
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Rates & Terms | |
Initial Setup Fee | $4,995 ($500 discount available for veterans) |
Monthly Maintenance Fee | $145 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
|
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
With Benetrends, you have a greater chance of getting funded quickly. It states that ROBS funding can occur in as soon as 10 days, which is among the fastest on this list. FranFund is another provider in our guide that can fund as quickly. However, because it’s best for franchises, it has less flexibility, plus it states that the average funding speed is 15 to 20 days. For these reasons, we chose Benetrends as the best provider for fast funding.
Even with its relatively fast funding speed, it offers many of the same services as other providers. This includes the creation of the required C-corp, designing and managing the retirement plan, setting up the necessary corporate bank accounts, and handling the transfer of funds.
In more than 40 years of operation, Benetrends has never had a plan deemed out of compliance by the IRS or United States Department of Labor. However, it still offers audit protection and access to legal support to give you even more peace of mind. It also gives you ongoing support to ensure your plan remains compliant and adheres to the annual ROBS requirements.
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
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Rates & Terms | |
Initial Setup Fee | $4,795 (discounts available for veterans) |
Monthly Maintenance Fee | $145 |
Funding Speed | As fast as 10 days |
ROBS Services Provided |
|
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.
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 to walk 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.
