ERSOPs (ROBS) Guidance issued
The IRS has issued guidance on what is commonly referred to as ERSOPs. Typically, an ERSOP involves ( at a very high level):
Individual starting new business
Business adopts qualified plan
Individual rolls IRA to qualified plan
Qualified plan buys shares of business.
Qualified plans hold shares of business and business owner gets the cash.
The IRS calls these transactions ROBS.
Guidance available here http://www.irs.gov/pub/irs-tege/rollover_guidelines.pdf .
More to come…
Permalink Submitted by Denise Appleby on Thu, 2008-11-06 22:30
Post updated to fix link.