Rollover of 401k into an LLC filing as S-corp

Rollover of 401k into an LLC filing as S-corp
0.0 0.0 0.0 0.0 0.0 0

#1

Is the following scenario possible? If not, what other options are available for my 401k funds once I quit to focus on my real estate business?

When I quit my 9-5, I will have funds in my corporate 401k plan. My business as a real estate agent will be structured as and LLC filing as an S-corp for tax purposes. I want to rollover my existing 401k into the LLC entity. What vehicle should be used? I am VERY leary of ROBS after reading through IRS.gov’s take on them (they all but say it’s viewed as tax evasion, but they can’t make it stick…yet).

Finally, can the funds in the LLC (assuming this is possible) be used for certain operating expenses, like in a ROBS plan?

Thanks in advance for the help and I apologize if I missed that it was already posted in here!


#2

Hi, @hometowntexas, and welcome. I’m not a CPA, but I don’t think you can do a ROBS (rollover for business startups) with anything other than a C corporation, anyway.

I’m not aware of another way to use retirement funds for your business without making expensive withdrawals, but I’ll ask our buddies at the AICPA.