Wouldn’t it be great to have a way to fund your business with the money you already have and avoid the debt and hassle of small business loans? Good news. There is. Using your retirement funds can help you start your business debt-free. And with no loan payments to worry about, it also increases your cash flow. If, however, you do need or want to take out a business loan, your retirement funds can also make for a smart equity injection a lender may require.
Your financial statement is comprised of all your accounts – checking, savings, investments, retirement accounts, and so on. Now, you’ve paid taxes on some of it, like the money in your checking account. At the same time, the taxes on your retirement accounts are deferred until you take it out. With the Rollover for Business Startup (ROBS) strategy, you can access some or all of your tax-deferred savings now and invest it into your business.
The ROBS process is governed by the Internal Revenue Service (IRS) and the Department of Labor (DOL) and has been legal since the (Employee Retirement Income Security Act) ERISA of 1974. FranFund facilitates the ROBS program through our proven, compliant FranPlan® program.