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IRA For Business

ROBS Solution allows you to invest funds from your retirement account into a new business/franchise. You can remove funds from a Traditional 401(k) or IRA Plan. The funds roll into your business without paying early withdrawal penalties or taxes.


Choose IRA Financial | Don’t know which plan you qualify for? Have questions about a transaction? Our tax professionals are here to help and will get back to you ASAP.

    Benefits of Using an IRA for Business


    Tax advantages

    With ROBS you have the ability to use your retirement funds to acquire a new business or grow an existing business tax-free!


    Access funds without penalties

    Taking distributions before retirement age can cost you up to 45% in taxes and penalties. With ROBS, you can access your retirement funds to start or grow a business tax free and without penalty!


    Acquire or build a business with no debt

    With ROBS, you can start or grow a business without ever borrowing a penny or touching the home equity you worked so hard to build.


    Control your future

    With ROBS, you will be in control of your retirement funds. ROBS is designed to make you the trustee of the plan giving you “Checkbook Control” over your retirement funds.



    We have developed a process that ensures speed and compliance. We use standardized procedures via phone, e-mail, fax, and mail. Your funds will be ready for investment within 14-21 days.


    IRS and ERISA compliant

    ROBS is an IRS and ERISA compliant structure that lets you use your retirement funds to acquire/invest in a business tax free.  Our in-house professionals specialize in the IRS rules and will keep your structure compliant.

    Why Choose IRA Financial

    We offer our clients customized IRS approved Self-Directed retirement solutions developed by our in-house tax attorneys.

    affordable solutions

    Affordable top-tier retirement solutions

    At IRA Financial Group, we never forget that this is a client-service business, and that our highest and best use is measured by the satisfaction we bring to those who call on us for self directed retirement solutions. We demand excellence from ourselves, and are committed to providing our clients with top-tier customized self-directed retirement solutions at a fair and reasonable price.

    We Provide Value

    When you choose IRAFG, you have direct and unlimited access to our in-house tax and ERISA professionals to ensure that all established tax structures are IRS compliant. Accordingly, we offer a full IRS audit guarantee and stand by the legality of our structures and will fully defend their merits against any IRS audit.

    “You all were on my mind late last night after I was informed the bank transferred the Money to the Seller of our Insurance Agency on my behalf. Without the IRA Financial team, my lifelong dream of owning this Insurance Agency would not be possible. We are very GRATEFUL this was done and to make new friends at the same time. I want you to feel comfortable to use my name and phone number anytime as a referral to anyone who thinks they may want to use their 401K in the same way we did.”

    Wes, General Ins. Agency Inc.

    “Adam, Jen and the whole team at IRA Financial have been professional, accessible and super supportive.  I would recommend them to anyone looking to navigate the murky waters of  setting up a Self-Directed IRA or ROBS. After a 30-year career in enterprise sales, I wanted to do my own thing. When I came across IFC on the web, it seemed too good to be true. Adam and IFG are THE Real Deal! Because of their amazing work over the past 8-9 months, my company is off the ground, and we are on track to have an amazing first year!”

    Rich Lane

    Wall Street Journal logo
    “What about your IRA, including rollover IRA? You need to look at state law, advises tax attorney Adam Bergman of New York’s IRA Financial Group.”

    CNN Money logo
    “Adam Bergman…gets several calls a day from clients like McDermott looking to invest their retirement funds in real estate. ‘Our average client has retirement accounts of about $150,000 and is looking to buy one or two properties.’”

    USA Today logo
    “Jeff Brown…transferred roughly $50,000 from his workplace 401(k) to purchase homes to fix up and sell…He uses a self-directed IRA that he set up through IRA Financial Group in Miami Beach.”

    Frequently Asked Questions

    The structure typically involves the following sequential steps:

    1. An entrepreneur or existing business owner establishes a new C Corporation;
    2. The C Corporation adopts a prototype 401(k) plan that specifically permits plan participants to direct the investment of their plan accounts into a selection of investment options, including employer stock, also known as “qualifying employer securities.”
    3. The entrepreneur elects to participate in the new 401(k) plan and, as permitted by the plan, directs a rollover or trustee-to-trustee transfer of retirement funds from another qualified retirement plan into the newly adopted 401(k) plan;
    4. The entrepreneur then directs the investment of his or her 401(k) plan account to purchase the C Corporation’s newly issued stock at fair market value ( i.e., the amount that the entrepreneur wishes to invest in the new business); and finally
    5. The C Corporation utilizes the proceeds from the sale of stock to purchase an existing business or to begin a new venture

    If structured correctly, yes. IRC Section 4975(c) includes a list of transactions that the IRS deems “prohibited”. However, Internal Revenue Code Section 4975(d) lists a number of exemptions to the prohibited transaction rules. Specifically Internal Revenue Code Section 4975(d)(13) lists an exemption for any transaction which is exempt from section 406 of the Employee Retirement Income Security Act of 1974 (ERISA) by reason of section 408(e) of such Act.

    Section 408(e) provides that section 406 shall not apply to the acquisition or sale by a plan of qualifying employer securities (as defined in section 407(d)(5), provided that: (1) the acquisition or sale is for adequate consideration; (2) no commission is charged with respect to the acquisition or sale; and (3) the plan is an eligible individual account plan (as defined in section 407(d)(3)). A 401(k) plan fits in to this definition.

    Pursuant to ERISA Section 406, the acquisition or sale must be for “adequate consideration.” Except in the case of a “marketable obligation”, adequate consideration for this purpose means a price not less favorable than the price determined under ERISA § 3(18),subject to a requirement that the acquisition or sale must be for “adequate consideration.” An exchange of company stock between the plan and its employer-sponsor would be a prohibited transaction, unless the requirements of ERISA § 408(e) are met.

    With the Business Acquisition & Compliance Solution Structure (“BACSS”) also known as the Rollover Business Start-Up (“ROBS”) solution you are permitted to purchase almost any legal business or franchise. Whether you are starting a new business/franchise or buying an existing business, the BACSS will allow you to accomplish your business goals tax-free and without penalty.

    • Traditional IRAs

    • 401(k) Plans

    • 403(b) Plans

    • 457 Plans (for governmental agencies)

    • SEPs

    • SIMPLE Plans

    • Annuity Plans

    • Defined Benefit Plans

    • Rollover Plans

    The Internal Revenue Code and ERISA law require the use of a “C” Corporation for using retirement funds to acquire stock in a business. The reason for this is that Section 407(d)(1) of ERISA defines the term “employer security,” in part, to mean a security issued by an employer of employees by the plan, or by an affiliate of such employer. Under section 407(d)(5) of ERISA, the term “qualifying employer security” includes an employer security, which has been understood to mean stock. The term “stock” is not defined in Title I of ERISA, however, most tax commentators believe this to mean the stock of a corporation and not an interest in a limited liability company or partnership. The use of an S Corporation for this structure is not permitted because a qualified plan cannot be an S Corporation shareholder. Generally only individuals are permitted to be S Corporation shareholders.

    Get a Free Consultation With a Tax Specialist!

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