Has anyone used the ROBS rollover to buy a business

I don’t have any specific designs on anything, would just like to keep my options open if life were to throw a curveball.

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Has anyone used the ROBS rollover to buy a business

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I have several clients who have done this. Every single one was not a client of mine when they did this, and they became clients because they completely screwed up the process when it comes to taxes including 401K reporting, and needed me to fix it.

There are companies out there who will set it up for you. I would not do it alone. I also would not go to a random attorney.

Also, be aware that the IRS takes a hard look at these. They are not defined as abusive, but a lot of times mistakes are made (that's how the clients came to me)

The biggest issues are:

1) If the business goes tits up, you've lost your business AND your retirement savings

2) You have to be a C Corp. No exceptions. That means another tax return and following C Corp rules. That means paying yourself a salary, so payroll returns.

3) The 401K plan isn't eligible for any reporting exemptions. So 5500 or 5500-EZ must be filed each year. Another tax return.

4) If you end up with employees, not only do you have to allow them in your 401K plan, but you also have to give them the option to use their account to buy company stock (just like you did when you started this).

5) The fees to set it up can't be paid via the rollover, so you have to use outside money. You are looking at roughly 5K.