The Business Acquisition & Compliance Solution Structure (BACSS) also known as the “Rollover Business Start-Up” (“ROBS”) Solution is an IRS and ERISA approved structure that allows an individual to purchase a new or existing business with retirement funds and be active in the business without triggering any of the IRS prohibited transaction rules.
Use your retirement funds to purchase a business or franchise tax-free
- Recapitalize and/or expand your business tax-free with no penalty
- Earn a reasonable salary from your new or existing business
- Diversify your retirement portfolio and invest in something you know and believe in
- Build your retirement nest egg with a 401(k) plan
- Flex pricing plan record-keeping and administration services
- IRS & ERISA compliant
- Asset/creditor protection
How Does it Work?
- Your assigned tax partner and CPA will work with you to establish a C Corporation and ERISA 401(k) qualified retirement plan.
- The new C Corporation and 401(k) plan account can be opened at any local bank or financial institution.
- Fund the new 401(k) plan with a rollover of any pre-tax retirement funds or by making a tax-deductible or after-tax (Roth) contribution directly to the new plan account.
- The 401(k) plan would then purchase stock of the C Corporation (qualifying employer securities), allowing for the 401(k) funds to be invested in the corporation in return for shares of the corporation.
- The C Corporation would then have the necessary funds to buy or finance the business.
- As an employee of the business, you would be able to earn a salary from the business.
- No plan termination fee
Below please find a link that describes the Business Acquisition Solution (ROBS) program in greater detail: