The Benefits of ROBS Plan

When it comes to using retirement funds to buy or finance a business that you or another “disqualified person” will be involved in personally, there is only one legal way to do it and that is through the Business Acquisition Solution, also known as a Rollover Business Start-Up (ROBS).

  • Funded in 2-3 Weeks
  • Increased Cash Flow
  • Deferred Taxes
  • You Are In Control

What Makes IRA Financial Different

Clients

IRA Financial Group’s tax and ERISA specialists have helped more than 12,000 clients self-direct their IRA and invest $4 billion in alternative assets, such as real-estate.

Turning Retirement Funds into Start-Up Dreams

Books

Founder of IRA Financial Group and former tax and ERISA attorney, Adam Bergman, has published seven books to help investors self-direct their individual retirement account.

Forbes

Find IRA Financial Group on Forbes! Adam Bergman is a frequent contributor to Forbes.com and an official member of the Forbes Financial Council.

Experience You Need

IRA Financial Group has over a decade of experience helping investors self-direct their retirement accounts.

Tell Us What You Need

Our team will work one-on-one with you to establish a Self-Directed IRA, Solo 401(k) or ROBS solution that fits your goals.

How Does the ROBS Solution Work

An entrepreneur or existing business owner establishes a new C Corporation.

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.”

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.

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;

The C Corporation utilizes the proceeds from the sale of stock to purchase an existing business or to begin a new venture.

Some of the Advantages of the ROBS Solution

Save Money

The primary advantage of establishing a ROBS solution is to be able to use your retirement funds to invest in a business you will be personally involved in without having to pay tax the retirement funds you wish to use as a distribution to tax and potentially penalty.

Invest in Yourself

The ROBS solution allows one to invest their retirement funds in a business that will be actively run by the retirement account holder. As a result, one is essentially investing their retirement funds in themselves rather than on Wall Street.

Diversification

There is a growing sentiment amongst financial advisors, especially after the 2008 financial crisis, that in order to protect your retirement funds from a market downturn, your retirement funds should be well diversified. One can generally not eliminate investment risk completely, but one can manage your level of risk.

Earn a Salary

In order for one to be a participant of a 401(k) Plan, one needs to be an employee of the business, which adopted the plan.

Benefit from having a 401(k) Retirement Plan

One of the best ways for you to save toward your own retirement and ensure your future security is through an employer-sponsored 401(k) plan.

Matching Contributions

Many employers will match a portion of your savings: It’s like passing up free money if you don’t participate.

Retaining employees

With most businesses offering their employees retirement benefits, it is worthwhile for small businesses to compete for talented workers by implementing 401(k) benefits.

Easy Administration

401(k) Plan administration is now easier and more cost-effective than ever with Internet options available to small employers.

You Can Participate As Well

You are eligible to participate in the company 401(k) plan if you are an owner or an employee of the company that sponsor’s the 401(k) plan.

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“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.”

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“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.'”

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“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.”

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