Trump plan to reduce corporate tax rate to 15% could make it more tax efficient for thousands of Americans use retirement funds tax-free to fund a business via ROBS
IRA Financial Group, a provider of Rollover Business Startup Solution (“ROBS”) solutions, expects to see a boost in the popularity of the ROBS solution based on President Trump’s tax plan, which calls for a reduction in the corporate tax rate from 35% to 15%.
The rollover business start-up (“ROBS”) arrangements 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 401k solution is a tax efficient way for any entrepreneur looking to use IRA fund to buy a business or franchise without incurring any tax or penalty from an IRA distribution. “With a reduction in the corporate income tax rate from 35% to 15%, operating a business via a C Corporation will become more tax efficient and should increase the popularity of the ROBS IRA solution with entrepreneurs looking to use retirement funds to buy a business,” stated Adam Bergman, a partner with the IRA Financial Group.
Check out Adam Bergman’s book about ROBS, Turning Retirement Funds Into Start-Up Dreams, available on Amazon.
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 and Solo 401(k) plans. 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.