Rollovers as Business Startups (ROBS) Plans

Using your retirement funds to start or grow your business

For business owners and entrepreneurs operating in traditionally underserved industries, finding viable sources of capital to either start or grow a business can be a difficult task. The ROBS strategy for business financing is a funding vehicle that allows business owners to bypass the traditional bank loan process. Implementing the ROBS strategy will allow owners to fund their business ventures through retirement monies (401(k), 403(b), Defined Benefit Plan, etc.) without incurring hefty tax penalties.

The ROBS transaction is a complex process that should be implemented by qualified professionals. Our team of retirement plan veterans have the knowledge and experience necessary to administer such a plan while making sure you remain compliant 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

The real challenge that most business owners who engage in the ROBS business financing strategy face is, of course, compliance issues and regulatory requirements. Failure to stay up to date with the ongoing administration of this strategy can result in severe legal repercussions and extensive fines. At LRS we don’t want you to worry about these nitty-gritty details, instead 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 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 an experienced ROBS 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 a company.

ROLLOVER

Your ROBS Provider will work with a retirement plan administrator, like Leading Retirement Solutions, to adopt and transfer your retirement savings into the retirement plan sponsored by the C-Corporation.

INVEST

You will then invest your funds in the C-Corporation, allowing your funds to become available as the operating capital needed to start or grow a business venture.

The SECURE Act Allows For Easier ROBS Maintenance

The SECURE Act greatly enhances the ability for small and medium-sized employers to maintain retirement programs for their employees with the creation of a new retirement vehicle called a Pooled Employer Plan. Reduce expenses, simplify decision-making, and decrease the amount of time and effort you devote to maintaining your ROBS plan by adopting a pooled employer plan through Leading Plan Solutions™!

FIND OUT MORE

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 the retirement plan 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

Implementation

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

Tax Savings

Our team of experts will apply various strategies to help reduce taxes and save your company money!

Exiting A ROBS Plan

If you are currently in the midst of a ROBS nightmare, LRS can help clean up the mess and guide you through the exiting process.

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.