Rollovers as Business Startups (ROBS) Plans

Using your retirement funds to start or grow your business

Are you looking for capital to either start or grow your business? The ROBS transaction is a funding vehicle that is also a tax shelter. It essentially uses your retirement monies (401(k), 403(b), Defined Benefit Plan, etc.) to fund your business without incurring hefty tax penalties.

Our team brings the knowledge and experience necessary to administer such a plan while making sure you remain complaint with all government regulations.

YOUR MONEY YOUR WAY

We’ll design and administer your new ROBS plan, so you can then utilize your retirement monies to start your business venture or take your existing business to the next level.

STAY COMPLIANT

ROBS transactions often require a specific type of recordkeeping support, annual asset valuations and IRS reporting. Don’t worry, we’ll do all the heavy lifting, so you can focus on what’s really important, growing your business.

CORRECTION SERVICES

If you’ve already purchased or engaged in a ROBS transaction we can identify and correct any fiduciary and/or plan violations caused by the incorrect use of the ROBS transaction.

HOW IT WORKS

ESTABLISH

Working with a licensed Provider, you will establish a new C-corporation with a new retirement plan that contains unique language allowing participants to invest retirement savings into private stock of the new company.

TRANSFER

Your Provider will work with a retirement plan administrator, like Leading Retirement Solutions, to adopt and transfer your retirement savings into the retirement plan of the new C-corp.

 

GROW

You will then buy corporate stock in the new corporation allowing for your funds to become available as the operating capital it needs to start or grow your business venture.

HAVE A ROBS TRANSACTION THAT NEEDS FIXING?


ROBS transactions often require a specific type of recordkeeping support, annual asset valuations and IRS reporting.

If you have already purchased or engaged in a ROBS transaction we can identify and correct any fiduciary and/or plan violations you may have. Don't wait for the IRS to come to you. Let us help you get compliant today.

 

YOU HIRED EMPLOYEES

NOW WHAT?

Did you know that the IRS and DOL have regulations that require you to offer Retirement Plans from your ROBS transaction to your employees when they become eligible?

Failure to do so in a timely manner will result in a Plan violation requiring your company to pay significant penalties, taxes, as well as other costly and time consuming filings with the IRS and DOL.

Don't worry. LRS will help you offer the plan to your employees along with adding traditional investment options, provide enrollment kits, prepare participant notices and so much more. Contact us here for help.

HOW WE CAN HELP

We will design and administer your new retirement plan that has engaged the ROBS strategy, making sure you stay compliant with all government regulations.

We can partner with your current financial advisor as a third party administrator so you can keep your remaining retirement savings in their traditional investments.

If you haven't selected a ROBS Provider yet, we will help connect you with a licensed professional Promoter that will help you navigate this strategy effectively and safely. 

 

 

Want to know more?

Check out our 8-Step Guide to the ROBS strategy

Employee Stock Ownership Plans (ESOP)

 

WHAT IS AN ESOP?

Employee Stock Option Plans (ESOPs) are employee benefit plans that are similar to profit-sharing plans. With an ESOP, a company sets up a trust fund, contributing new shares of its own stock or cash to buy existing shares.

While ESOPs may sound somewhat similar to ROBS, they're commonly used to provide a market for the shares of owners of successful companies to reward employees, or to take advantage of incentives to borrow money for acquiring new assets in pretax dollars. ESOPs are normally a contribution to the employee, not an employee purchase.

Let us design a plan to meet your company's goals

206.430.5084  |  800.974.2814  

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