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Are you Starting a New Business?
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4 Replies
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Hi George, I have a couple creative questions, I think. I don’t live in the USA and have a 401k with some decent cash locked up for another 20 years until I turn 59.5. Could I use a ROBS to put that 401k to work for me now.
A couple ideas I had were to day trade through a C-Corp. Not ideal, but a small price to pay compared to cashing out the 401k early.
Another Idea I had was to get into rental properties or Air BNB, but curveball… Can I buy properties located outside the USA? I don’t see any clear-cut rules saying I couldn’t do either of these businesses.
Thanks for any input!
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A ROBS 401k funded business must be an active operating company. While simply day trading stocks would not qualify as an active operating company, it is possible fund a real estate operating company via a ROBS 401k plan (see more HERE).
While there is no prohibition on operating a ROBS 401k-funded business outside of the United States, it would certainly be prudent to consider the tax implications with one’s business tax advisor (e.g. as the business may have to pay taxes in the country in which it operates along with C-corporation taxes in the United States).
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Thanks for the great info!
The country I’m looking at currently has no income corporate tax. So I think real estate may work well.
I know of plenty people day trading in LLC and S-Corps as a day trading business. C Corp isn’t typical, but it can be done. I would trade roughly 50-100k USD per day and trade under a C Corp. World the IRS say its not a operating company with that type of capital movement? At the same time they would be taxing me as an operating company.
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