Rollover as Business Start-ups

Submitted by Paul Rennie on Wed, 2021-03-31 16:13

Interested in ideas on how to help a client with a successful multi-franchise business in a ROBS.

Client did a rollover from an old employer 401K into a IRA/ROBS many years ago and now has a very profitable business running within this structure.

With all of the reasons to commence moving monies out of tax deferred, this one only makes it more so. Client is in early 50’s

Looking for ideas on how to get business into a more optimal vehicle/structure; both financing alternatives to accomplish and thoughts on timing (i.e. all at once or gradual).

Thanks



Submitted by Alan - IRA critic on Wed, 2021-03-31 19:15

Client needs to retain a CPA familiar not only with ROBS, but also the complications of business entity re structure.  This is way beyond the scope of this forum, and client needs to be very careful since as you may have heard the IRS has been targeting ROBS for special attention over the last decade. Seems like client should first make sure everything cited in the following link is fully compliant before undertaking a structural change.
Rollovers as Business Start-Ups Compliance Project | Internal Revenue Service (irs.gov)

Submitted by Paul Rennie on Thu, 2021-04-01 14:34

Thanks Alan, yes I had already seen the IRS.gov page and looking for a Texas based CPA who may be able to help

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