Menu Close

New Flash of Optimism for Small-Business Owners Triggering Strong Demand for ROBS Structure

IRA Financial Group survey shows small-business optimism surged in July and August to some of the highest levels since the recession.

IRA Financial Group, the leading provider of Business Acquisition “ROBS” solutions, announces the finding of its client survey, which showed strong small business optimism due to high consumer demand. “Stronger confidence in the small business community has caused many entrepreneurs and potential small business owners with the confidence to start looking to use retirement funds to buy a business,” stated Adam Bergman, an in-house tax attorney with the IRA Financial Group. “We have seen an increase in demand from entrepreneurs looking to use retirement funds to buy a business in hopes of benefiting from a more stable business environment,” stated Mr. Bergman.

A Rollover Business Start-up (“ROBS”) arrangement typically involves rolling over a prior IRA or 401(k) plan account into a newly established 401(k) plan, which a start-up C Corporation business sponsored, and then investing the rollover 401(k) Plan funds in the stock of the new C Corporation. The funds are then deposited in the C Corporation bank account and are available for use for business purposes. “The ROBS strategy has allowed many individuals the ability to use their retirement funds to get back into the job force that has largely been shut out to them after the 2008 financial crisis,” stated Mr. Bergman. The ROBS solution is perfect for any entrepreneur looking to use IRA funds to buy a business or franchise without incurring any tax or penalty from an IRA distribution.

With IRA Financial Group’s ROBS structure, the limitation imposed using a Self-Directed IRA LLC to buy a business can be sidestepped because the individual retirement account business owner would not be able to be actively involved in the business, earn a salary, or even personally guarantee a business loan. Whereas, if the business owner used a ROBS strategy, that individual would be able to be actively involved in the business, earn a salary, as well as personally guarantee a business loan without triggering the IRS prohibited transaction rules.

The IRA Financial Group was founded by a group of top law firm tax and ERISA lawyers who have worked at some of the largest law firms in the United States, such as White & Case LLP, Dewey & LeBoeuf LLP, and Thelen LLP.

IRA Financial Group is the market’s leading provider of self-directed IRA LLC “checkbook control” solutions. IRA Financial Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate, without custodian consent.

To learn more about the IRA Financial Group please call 800-472-0646.

Share the knowledge
Posted in 401(k), Business Acquisition Solution, IRA Financial Group, Self-Directed IRA