Chart Compares the ROBS 401k to the Solo 401k Loan

Compare ROBS 401k vs Solo 401k Loan

Solo 401k Loan

Entity type that can establish: Any entity type (Sole Prop, LLC, S-corp)

Repayment Required: Yes – monthly/quarterly payments, 5 year term, Prime+1%

Employees Allowed: Owner-only business with no full-time w-2 employees

Limit: 50% of the balance not to exceed $50,000

Cost: Hundreds of dollars

ROBS 401k

Entity type that can establish: C-corporation required

Repayment Required: No – Equity investment

Employees Allowed: Yes

Limit: No

Cost: Thousands of dollars

For more information on the these types of plans, .