Can you use a 401(k) to buy a franchise? If you are a W2 employee dreaming of owning a business but unsure how to fund it, this video breaks down one funding strategy for W2 employees: the ROBS program (Rollover for Business Startups).
In this conversation with a franchise funding specialist, Lisa Welko explains how eligible retirement funds can be used to start or buy a franchise. Most employees do not realize that old 401(k)s, IRAs, TSPs or 403(b)s may be part of that picture.
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What’s covered
0:08 What is the ROBS program?
1:28 Eligibility requirements
3:02 Spouse and shared ownership rules
4:19 Timeline: how long the ROBS process takes
What will you learn from this video?
- What the ROBS program is and who it is for
- How eligible retirement funds can help you start or buy a franchise
- Eligibility and timelines
- Spouse scenarios and ownership rules
- Why ROBS is an IRS-regulated option
What are the key takeaways?
- ROBS is one funding strategy a W2 employee can look at on the way from employee to business owner.
- Old 401(k)s, IRAs, TSPs and 403(b)s are among the accounts the video mentions.
- Eligibility, timelines, spouse scenarios and ownership rules all matter, so go in with the details, not just the headline.
Who is this video for?
This is episode 3 of the Funding a Franchise series.
Good to know
This video is general education about funding options. It is not financial, tax or legal advice, and what applies to you depends on your own situation.
Not sure whether this applies to you?
That’s the kind of thing a 15 to 25 minute call sorts out quickly. Complimentary, with no obligation.
