{"id":844114,"date":"2026-10-26T20:03:02","date_gmt":"2026-10-26T20:03:02","guid":{"rendered":"https:\/\/www.abnewswire.com\/pressreleases\/?p=844114"},"modified":"2026-10-26T20:03:02","modified_gmt":"2026-10-26T20:03:02","slug":"buying-an-existing-business-using-retirement-funds-without-penalty-starts-with-a-robs-401k","status":"publish","type":"post","link":"https:\/\/www.abnewswire.com\/pressreleases\/buying-an-existing-business-using-retirement-funds-without-penalty-starts-with-a-robs-401k_844114.html","title":{"rendered":"Buying an Existing Business Using Retirement Funds Without Penalty Starts With a ROBS 401(k)"},"content":{"rendered":"
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\"Buying<\/a><\/div>\n
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Buy a business with your 401(k), penalty-free.<\/div>\n<\/div>\n<\/div>\n
IRA Financial shows entrepreneurs how to buy an existing business using retirement funds without penalty through a Rollover as Business Startups plan, with IRS audit protection included.<\/div>\n

SIOUX FALLS, SD – October 26, 2026 –<\/strong> Cashing out a 401(k) to buy a business can cost a buyer income tax plus a 10% early withdrawal penalty before the deal ever closes; IRA Financial helps entrepreneurs buy an existing business using retirement funds without penalty through a ROBS 401(k), with in-house tax attorneys and IRS audit protection built into one flat-fee plan.<\/p>\n

IRA Financial was founded in 2010 by tax attorney Adam Bergman, Esq. In 2008, while researching a client’s retirement options, he found the answer in a law library in about two hours: the tax code already let retirement plans invest in far more than stocks and mutual funds. ROBS, short for Rollover as Business Startups, grew out of that same set of rules. It isn’t a loophole. It relies on the long-standing ability of a qualified 401(k) plan to buy stock in the employer that sponsors it, and the IRS has reviewed the structure directly through its ROBS compliance project.<\/p>\n

The mechanics are what keep the money penalty-free. The buyer forms a new C corporation, and that corporation adopts its own 401(k) plan. Funds from an eligible account, such as a traditional IRA, SEP IRA, SIMPLE IRA, 401(k) or 457(b), roll into the new plan tax-free. The plan then buys stock in the C corporation, and the corporation uses that cash to purchase the existing business. Because the money moves by rollover rather than withdrawal, no distribution occurs and no early withdrawal penalty applies. Roth IRAs can’t be used, since they can’t roll into a traditional 401(k). The buyer also has to work in the business, and the plan has to file Form 5500 every year, even with a single participant.<\/p>\n

Owning a business through retirement dollars is a bet on something the investor can see and steer. It’s the same instinct behind one of IRA Financial’s best-known client stories: Danny put $5,500 of retirement money into a startup and watched that stake grow to $13.5 million. A ROBS buyer makes a more hands-on version of that bet, putting savings behind a business with real revenue and running it day to day.<\/p>\n

“The mistake I see most often is a buyer who sets up the ROBS correctly, closes the deal, and then forgets the plan still exists,” said Adam Bergman, Esq., founder of IRA Financial. “The IRS has been clear that a ROBS plan files Form 5500 every year, even with one participant, and the plan has to stay open to new employees as the business grows. The rollover is the easy part. Keeping the plan compliant is what protects the deal.”<\/p>\n

Entrepreneurs can learn more at irafinancial.com. IRA Financial’s ROBS 401(k) carries a one-time $3,500 setup fee and a flat $1,200 per year for plan administration and compliance, with IRS audit protection included. There’s no fee that scales with the size of the business or the balance in the plan.<\/p>\n

About IRA Financial<\/strong><\/p>\n

IRA Financial provides Self-Directed IRAs, Checkbook IRAs, Solo 401(k) plans and ROBS 401(k) plans that let investors put retirement savings into real estate, private businesses, cryptocurrency, precious metals and other alternative assets. The company was founded in 2010 by tax attorney Adam Bergman, Esq. Its mission is to give investors direct control over their own retirement savings, backed by the tax and legal expertise to use that control with confidence. IRA Financial serves 27,000+ clients in all 50 states, administers $8B+ in assets and holds a 97% client retention rate. Learn more at irafinancial.com.<\/p>\n

This release is for informational purposes only and does not constitute tax, legal, or investment advice. Investors should consult a qualified professional before using retirement funds to buy a business.<\/em><\/p>\n

Media Contact<\/span>
Company Name:<\/strong> IRA Financial<\/a>
Contact Person:<\/strong> Tony Unkel
Email:<\/strong> Send Email<\/a>
Address:<\/strong>5109 S Broadband Ln
City:<\/strong> Sioux Falls
State:<\/strong> SD
Country:<\/strong> United States
Website:<\/strong> https:\/\/www.irafinancial.com\/<\/a><\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Buy a business with your 401(k), penalty-free. IRA Financial shows entrepreneurs how to buy an existing business using retirement funds without penalty through a Rollover as Business Startups plan, with IRS audit protection included. SIOUX FALLS, SD – October 26, … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[401,425,451,427,404],"tags":[],"class_list":["post-844114","post","type-post","status-publish","format-standard","hentry","category-Business","category-Finance","category-Law-Legal","category-Personal-Finance","category-US"],"_links":{"self":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/844114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/comments?post=844114"}],"version-history":[{"count":0,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/posts\/844114\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/media?parent=844114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/categories?post=844114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.abnewswire.com\/pressreleases\/wp-json\/wp\/v2\/tags?post=844114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}