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Am I Eligible for ROBS?

You qualify for ROBS if all of the following are true:
1

You have at least $50,000 in eligible pre-tax retirement funds

Eligible account types:
  • Traditional 401(k)
  • Rollover IRA
  • Traditional IRA
  • SEP-IRA
  • SIMPLE IRA
  • 403(b)
  • 457
Not eligible for ROBS rollover:
  • Roth 401(k)
  • Roth IRA
Only pre-tax retirement funds can be rolled into a ROBS structure. Roth accounts have already been taxed and use a different distribution mechanism.
2

Your retirement funds cover at least 50% of your funding gap

The funding gap is the difference between your total capital needs and any cash you plan to invest personally.Example: If you need 200,000incapitalandhave200,000 in capital and have 50,000 in personal cash, your funding gap is 150,000.You′dneedatleast150,000. You'd need at least 75,000 in eligible retirement funds (50% of $150,000).If your retirement funds can cover 100% of the gap, you have full ROBS coverage. If they cover 50–99%, you may still qualify but will need to supplement with other capital sources.
3

You will work full-time in the business

ROBS requires you to be a W-2 employee of the C-Corporation. You must work at least 1,000 hours per year and receive a reasonable salary.
This is not optional. The founder must be a full-time employee receiving market-rate compensation. Not paying yourself a salary creates its own compliance issues.
4

Your business will be structured as a C-Corporation

ROBS requires a C-Corp because only C-Corporations can issue stock that a 401(k) plan can purchase. LLCs, S-Corps, and sole proprietorships do not qualify.If you haven’t formed your entity yet, that’s fine — Talcott Forge handles entity formation guidance as part of the process.

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Quick Eligibility Check

RequirementMinimumYour Status
Eligible retirement funds$50,000+Check your most recent statement
Funding gap coverage50%+(Capital needed − Cash available)
Full-time commitmentYes1,000+ hours/year
Entity typeC-CorporationWe help with formation

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Edge Cases

You can combine funds from multiple eligible accounts. Each account rolls over separately into the new 401(k) plan. The $50,000 minimum is based on your total eligible funds across all accounts.
Outstanding loans reduce your available balance. If your current 401(k) balance is 80,000butyouhavea80,000 but you have a 25,000 loan, your eligible funds are $55,000 (the vested amount minus the loan). Loan balances must typically be repaid or offset during the rollover.
If you’re still employed at the company sponsoring your current 401(k), you may need to check whether the plan allows in-service rollovers. Many plans restrict rollovers until you separate from the employer. If you’ve already left that employer, this isn’t an issue.
Below $50,000, ROBS typically isn’t cost-effective given the setup and ongoing administration fees. You may want to explore SBA microloans, personal savings, or other funding options.

Start Your Application

Ready to proceed? Start the ROBS eligibility screening.