Once the entrepreneur has decided to use her retirement funds to finance an existing or new business, following are the steps the ROBS 401k provider will generally follow to complete the funding of the business:
Step 1: File articles of incorporation with the Secretary of State.
Step 2: Obtain employer identification numbers (EIN) for (i) the corporation and (ii) the new ROBS 401k plan. Takes 2 business days.
Step 3: Open corporation bank account: Typically takes 1-2 business days.
Step 4: Draft new plan & Establish an Account for the new plan: The ROBS 401k provider will prepare the plan establishment forms. The account takes five business days to open.
Step 5: Transfer existing retirement funds to the new ROBS 401k plan: It generally takes 8-12 business days for the funds to be transferred to the new account provided that the transferring institution timely processes the transfer out form.
Step 6: Fund the Corporation with the new plan proceeds: After the plan funds have been deposited into the account for the plan, it is time to finish funding the Corporation, which will be accomplished by wiring funds to the bank account of the C-corporation.
Step 7: Complete and Sign the Corporation Documents: After the Corporation has been fully funded, we will e-mail the Corporation bylaws, stock certificates and minutes.
Step 1: File articles of incorporation with the Secretary of State.
Step 2: Obtain employer identification numbers (EIN) for (i) the corporation and (ii) the new ROBS 401k plan. Takes 2 business days.
Step 3: Open corporation bank account: Typically takes 1-2 business days.
Step 4: Draft new plan & Establish an Account for the new plan: The ROBS 401k provider will prepare the plan establishment forms. The account takes five business days to open.
Step 5: Transfer existing retirement funds to the new ROBS 401k plan: It generally takes 8-12 business days for the funds to be transferred to the new account provided that the transferring institution timely processes the transfer out form.
Step 6: Fund the Corporation with the new plan proceeds: After the plan funds have been deposited into the account for the plan, it is time to finish funding the Corporation, which will be accomplished by wiring funds to the bank account of the C-corporation.
Step 7: Complete and Sign the Corporation Documents: After the Corporation has been fully funded, we will e-mail the Corporation bylaws, stock certificates and minutes.
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