Growing confidence in U.S. economy expected to boost demand for using retirement funds to start a new business or franchise
IRA Financial Group, the leading provider of Business Acquisition “ROBS” solutions, expects to see strong demand for its Business Acquisition Solution in 2015 due to the strong economic optimism amongst entrepreneurs. “We expect to see a surge in confidence amongst entrepreneurs for starting a business in 2015 due to the very positive economic outlook,” stated Adam Bergman, a tax partner with the IRA Financial Group. “We have already seen an increase in demand from entrepreneurs looking to use retirement funds to buy a business,” stated Mr. Bergman.
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 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 fund to buy a business or franchise without incurring any tax or penalty from a IRA distribution.
With IRA Financial Group’s ROBS IRS 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. “IRA Financial Group’s ROBS solution will allow entrepreneurs the ability to use IRA or 401(k) plan funds to help fund a new business or finance an existing business,” stated Mr. Bergman.
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.