How are ROBS 401k funded C-corporation dividends taxed?
- If the C-corporation elects to distribute profits the profits are distributed in accordance with the ownership perspective (e.g. the ROBS 401k for your benefit and you personally).
- Profits are distributed from the C-corporation's after-tax profits.
- Amounts paid to you (e.g. transferred from the c-corporation's account to your personal account) with respect to the shares that you own personally would be considered capital gains and you would need to work with your personal tax advisor to report such amounts.
- Amounts paid to the ROBS 401k for your benefit with respect to the shares held in the ROBS 401k must be deposited in the ROBS 401k account (e.g. by writing a check payable to the ROBS 401k and depositing into the ROBS 401k brokerage account). As dividends with respect to stock held in your ROBS 401k, the gains are tax-deferred.