No Ifs, Ands, or Buts: All ROBS Plans Must File a Form 5500
March 22, 2023
In many respects, ROBS plans are a terrific way to fund a new business. But, as we have discussed in prior blog posts, a ROBS
Category: ROBS Plans
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Commit to Compliance: No ROBS Plan is “Plug and Play”
March 8, 2023
Creating a ROBS plan is tricky, and a whole industry has developed to help business founders avoid key compliance pitfalls—Is the ROBS participant an eligible
Balancing the Risks and Rewards of an In-Plan Roth Conversion of ROBS Stock
February 27, 2023
If you’ve decided to invest in your new company through its retirement plan, commonly known as doing a “ROBS” transaction, you probably are already aware
The Advantages and Tax Effects of Dividends Paid to the ROBS Plan Account
January 10, 2023
In addition to providing operating funds to the ROBS corporation, a ROBS investment is also permitted to earn money back from the corporation, in the
ROBS Plan Exit Strategies—Part 2: Tax Effects of Divesting the Plan of Stock Ownership
December 27, 2022
This post is the second of a two-part post on ROBS exit strategies. The expenses and tax effects of the various paths of ROBS exit
ROBS Exit Strategies—Part 1: Options for Divesting the Plan of Stock Ownership
December 18, 2022
ROBS plans (i.e. Rollover Business Start-Up plans) are a popular method for funding new business ventures, especially for franchises. The tax savings enable the entrepreneur
Know Before You Go! If you want to exit ROBS with a redemption, you need an appraisal
November 17, 2022
ROBS corporations and participating parties should always find a way to conduct all transactions in shares at fair market value
ROBS Funding is Two Things in One Transaction– Start-up Capital and a Retirement Plan Asset
January 20, 2022
As any search engine will reveal, there are plenty of websites and articles describing the joys of using employee retirement plans to fund a business start-up, in transactions commonly referred to as ROBS (Rollover Business Start-Up). This post discusses the basics of the typical ROBS transaction.
ROBS Succession Planning (Part 2): How the Company Can Survive the Death of a Co-Owner
December 27, 2021
When one of the owner-participants in a ROBS plan dies, the assets in the decedent’s account, including the company stock, must be transferred to a new plan account established for the beneficiary.
Understanding the ROBS Succession Problem
November 15, 2021
You’ve finally got the financing together to fulfill your dream of company ownership, thanks to a Rollover Business Start-Up, aka a “ROBS” transaction.