Your Post-Funding Dashboard
When your business is funded, your dashboard updates to reflect two zones: Zone 1 - Funded & Ready: A congratulations summary confirming your business is capitalized, along with the most important next steps to get operations running. Zone 2 - Action Required: An expandable section for any outstanding items that still need your attention - such as electing fee reimbursement or completing any open tasks from the funding process.Immediate Next Steps
Open a Business Bank Account
Your C-Corporation needs its own bank account - completely separate from personal accounts and the 401(k) plan trust. This separation is critical for compliance.
Set Up Payroll
As a full-time employee of the C-Corporation, you must be on payroll with a reasonable salary. This is not optional - the IRS expects W-2 employment.
Elect Fee Reimbursement
Your C-Corporation may reimburse you for the $5,000 ROBS setup fee. You have two options: receive the reimbursement as cash paid from corporate funds, or elect to receive additional shares of C-Corp stock issued to the plan trust at the same per-share price as your original ROBS transaction. Talcott Forge generates the required board resolution and supporting documentation automatically once you make your election. This option appears in the Action Required section of your post-funding dashboard.
Ongoing Compliance Obligations
Annual Requirements
| Obligation | When | What’s Involved |
|---|---|---|
| Form 5500 Filing | Annually (7 months after plan year-end) | Required filing with the DOL for 401(k) plans with assets |
| Plan Valuation | Annually | Fair market value of plan assets (including the C-Corp stock) |
| Prohibited Transaction Review | Quarterly (recommended) | Verify no prohibited transactions have occurred |
| Board Meeting Minutes | At least annually | Document corporate governance decisions, especially compensation |
What Talcott Forge Monitors
- Compliance deadlines - tracked and surfaced in your dashboard
- Form 5500 preparation - data collection and filing support
- Quarterly admin reviews - covered by your ongoing admin fee
Common Compliance Pitfalls
Commingling funds - Never mix personal funds with corporate funds or plan trust funds. Maintain separate accounts. Unreasonable compensation - Your salary must be at market rate for your role and industry. Paying yourself significantly above or below market raises red flags. Personal guarantees - Never personally guarantee a loan on behalf of the business. Under Peek v. Commissioner, personal guarantees on business debt constitute a prohibited transaction that disqualifies the entire plan. Forgetting Form 5500 - This annual filing is required for 401(k) plans with assets. Missing it triggers automatic penalties. Self-dealing transactions - The C-Corporation cannot lease property from you, lend money to you, or engage in transactions that benefit you at the plan’s expense.Learn About Prohibited Transactions
Understand what you can and cannot do under ROBS.