With your corporation in place from Step One, your business now adopts a Business Funding Trust Plan — a qualified 401(k) Profit Sharing Plan that replaces your existing plan.
What makes this plan different are the specific clauses that allow investments in private corporate stock. Standard retirement plans can’t buy shares in a private company — yours can. This is the legal mechanism that lets your retirement funds purchase stock in your new business without a distribution, without a taxable event, and without taxes due.
Your new qualified plan, drafted and adopted for your business — the vehicle your retirement funds will live in.
The specific clauses that allow your plan to invest in private corporate stock — the legal mechanism that makes ROBS funding possible.
Federal identification numbers issued for both your trust and its bank account.
A federal tax credit available to your new plan — included with our service.
We help you open and set up the trust account, end to end.
A qualified 401(k) Profit Sharing Plan that your new business adopts. Unlike a standard retirement plan, it includes specific clauses that allow the plan to invest in private corporate stock — the mechanism that makes tax-free ROBS funding possible.
The Business Funding Trust Plan replaces it. Your old plan’s assets are rolled into the new plan in Step Three — ready to purchase stock in your corporation.
Talk with our team about the options available to you.
