The Must-See Guide to ROBS 401K Business Financing

[@mysolo401kfinancial3]

Thanks for checking out my video!

[@dadkinson]

Great video, thank you. I have a few questions: 1) how does one value a brand new company when setting this up and issuing stock? 2) at around 17 min you talk about rolling over to the C-Corp's 401k but not using all the money - are there any rules for actively making use of the funds once they're rolled into the business's 401k? In other words, what happens if someone rolls over 250k but the business actually only needed 200k to get up & running? 3) are there any rules that connect amount of investment with degree of active involvement in the business? Eg. Joe is running business and works as employee full-time, he rolled over 50k into the corp; Joe's wife, Sam, is an employee but consults only part-time, yet she rolled over 200k into the corp. Would this be ok? Thank You.

[@mysolo401kfinancial3]

1) The stock will be issued in proportion to the cash invested 2) The C-corporation may use the funds invested for legitimate business expenses including keeping the funds in the business account for future operating expenses 3) Anyone who invests retirement funds (regardless of the amount invested) must be a bona fide employee (e.g. working 1000 hours or more per year in the business)

[@dadkinson]

@@mysolo401kfinancial3 thanks, that's very helpful. I can see point (3) being a problem for many family businesses as I can imagine one person being way more involved in the business than the other, yet they'd both like (need) to contribute. I believe spouses can't transfer IRA funds to each other.

[@mysolo401kfinancial3]

@@dadkinson Spouses certainly can't transfer an IRA to the other spouse. Both spouses can each work 1000 hours to satisfy the requirement if they both want to invest.