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
Maintain Separate Business Banking
Your C-Corporation’s business bank account should remain completely separate from personal accounts and the 401(k) plan trust. This separation is critical for compliance.
Set Up Payroll
As a working owner and W-2 employee of the C-Corporation, you must be on payroll with reasonable compensation for services performed. This is not optional - ROBS is not a passive investment structure.
Elect Fee Reimbursement
Your C-Corporation may reimburse you for the $5,000 ROBS setup fee. You can choose cash reimbursement from corporate funds or share-based reimbursement through the plan trust. Nexus presents the election in your post-funding dashboard and generates the required supporting records when you make your choice.
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) |
| Summary Annual Report | Annually after Form 5500 | Participant disclosure prepared from the annual filing |
| Prohibited Transaction Review | Quarterly (recommended) | Verify no prohibited transactions have occurred |
| Board Meeting Minutes | At least annually | Document corporate governance decisions, especially compensation |
| Employee and contribution records | Ongoing | Track service, eligibility, notices, and any contribution deposits |
What Nexus Supports
Nexus supports standard plan and entity administration after funding, including compliance deadline tracking, annual filing support, required plan maintenance, valuation coordination, and entity administration support.What Remains Your Responsibility
You remain responsible for payroll, employee records, contribution remittance, corporate tax filings, business licenses, franchise taxes, operating-company status, and any legal, tax, accounting, investment, or fiduciary decisions. You also need to notify Talcott Forge before material changes such as ownership changes, business acquisitions or sales, new eligible employees, plan mergers or terminations, or an IRS/DOL inquiry.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.