Certain financial and legal operations are offering a way for individuals to start their own company by using rollover monies from a previous employer. If set up properly, this is a legitimate vehicle for an entrepreneur to fund a business. These types of transactions have adopted the name, ROBS (Rollover for Business Startups)
These transactions are primarily accomplished by designating the plan as an Eligible Individual Account Plan (EIAP) that allows for the choice of employer securities as an investment option.
If you choose to offer this type of plan, be sure to get an independent appraisal of the business prior to the purchase. The cost of an annual appraisal should also be considered.