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Can I Get Business Funding

Using your 401(k) to start a business

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Short answer: a Rollover as Business Startups (ROBS) lets you invest eligible retirement funds in your own business without early-withdrawal penalties or a loan, when it is set up correctly.

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How it works, in plain terms

  1. The business is set up as a C corporation with its own retirement plan.
  2. Your eligible retirement funds roll into that plan.
  3. The plan buys stock in your company, which gives the business the money.

What to weigh

  • You are risking your retirement savings
  • There are setup and ongoing compliance costs
  • It must follow IRS and Department of Labor rules, so use an experienced provider

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This guide is general education, not financial, legal, or tax advice. AJV Ventures LLC is not a lender. Lender requirements vary, so confirm terms directly with any lender before you apply.