Navigating ROBS for Business Startups with Mickey Parker, CEO of Accelefund
In this episode, Keith explores an innovative way to start or buy a business using the retirement funds (IRAs and 401Ks) with Mickey Parker, Co-Owner and CEO of Accelefund. Mickey shares how entrepreneurs can utilize their retirement funds tax-free by setting up a ROBS (Rollover for Business Startup) account and using that to invest in their startup. He explains the advantages of ROBS, how to set one up, when it makes sense and doesn’t, how this approach can help any entrepreneur start a business. Mickey also shares success stories from Accelefund clients, why many bankers are unaware of this powerful financing tool, and the current regulatory changes impacting this unique investment strategy.
Key Takeaways
[2:00] Mickey’s experience as a controller and CFO led him to discover ROBs (Rollover for Business Startup) and eventually take over Accelefund.
[5:38] How the ROBS program allows entrepreneurs to use their existing retirement funds to invest in a new C corporation without incurring taxes or early withdrawal penalties.
[9:33] The difference between ROBS and a self-directed IRA.
[11:12] Requirements of the program.
[14:36] ROB plans can be used as the equity support for an SBA loan.
[17:02] How Accelefund works with entrepreneurs.
[18:22] Success stories.
[20:08] Prohibited transactions and business types that aren’t allowed.
[26:10] Why most bankers don’t know about this option.
[27:22] Using retirement funds for business startup equity and exit strategies.
[34:06] What happens if the business fails?
[35:05] Trends Mickey sees in the market.
[38:11] Regulatory changes over the years.
[38:44] The IRS Memo from 2008 on ROBS.
[39:22] SBA endorsement on ROBS.
Resources:
RBF Network
Keith’s Twitter
Mickey: Accelefund | mickey@accelefund.com | 913-274-1930 | Accelefund YouTube
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