Self-directed IRA vs ROBS?

September 25, 2025

by a searcher from Emory University - Goizueta Business School in Atlanta, GA, USA

I’m a searcher, relatively early in the process and I’m considering leveraging my 401k, along with an SBA loan, for a business acquisition. I’ve heard there are two ways to do this: self-directed IRA or ROBS. For those of you who have compared both options and gone through the process, what were the deciding factors and considerations? I know that this is a complex tax and legal question so if there are any service providers on this platform that can help me in deciding how to proceed, please let me know! I’ve spoken to service providers who are familiar with one or the other but not both, so if you are knowledgeable on both, I would love to connect. Many thanks in advance to the SearchFunder community :)

Reply by a searcher
from Massachusetts Institute of Technology in Boston, MA, USA

I am of the understanding that you cannot work in the business you invest in with a SDIRA, and that ROBS is the only option here. I would be happy to be wrong, however!

Reply by a searcher
from University of California, Los Angeles in Atlanta, GA, USA

I just completed a ROBS, and worked through the requirements for my new C-Corp to purchase a business, including applying for a DBA/ trade name. I live in the Atlanta area as well, and applied for the DBA through Fulton County. I used Benetrends for the ROBS. Benetrends is partnered with Traynor Capital and SAS for the C-Corp 401k and accounting portions, which I had a great experience with. I used Bluevine Inc. for my business checking. Learning the tax implications, how the 401k funds flow through the various stages of the process, and C-Corp owning the business vs me personally was something I had to learn more about. Feel free to email me at redacted if you would like to hear more about my personal experience.

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