Rollover Business Start-Up (ROBS) Strategy Big Winner in Republican Proposed Tax Plan, According to Adam Bergman – IRA Financial Group Partner

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Reduction in corporate tax rates should have a significant impact on increasing popularity of ROBS retirement strategy for business financing opportunities

Reduction in corporate tax rates should have a significant impact on increasing popularity of ROBS retirement strategy for business financing opportunities

The reduction in the maximum corporate tax rate to 25% should make the rollover business start-up” or “ROBS more appealing to individuals seeking to use retirement funds to buy or finance a new business or franchise

Adam Bergman, a partner with the IRA Financial Group, the leading provider of “checkbook control” self-directed IRA LLC and Solo 401(k) plan solutions, expects to see strong demand for the rollover business start-up solution or ROBS. When it comes to using retirement funds to invest in a business involving the retirement account holder or any of his or her lineal descendants (“disqualified persons”) there is generally only one legal way to do it and it involves the purchase of C Corporation stock (qualifying employer securities) by a 401(k) qualified retirement plan. The structure is known as a “rollover business start-up” or “ROBS”. The ROBS arrangement typically involves rolling over a pre-tax IRA or 401(k) plan account into a newly established 401(k) plan, which is sponsored by a “C” Corporation and then investing the rollover funds in the stock of the “C” Corporation. The individual retirement account holder can then earn a reasonable salary as an employee of the business. The advantage of the ROBS solution is that it does allow one to use all their pre-tax IRA or 401(k) funds to buy a business that they will be involved in personally as an employee without tax or penalty. Nevertheless, one of the main downsides of using the ROBS strategy is the high corporate tax rate on C Corporation profits, which currently has a maximum tax rate of 35%. However, one of the Republican tax plan proposals is a reduction in the corporate tax rate to 25%. “The reduction in the maximum corporate tax rate to 25% should make the rollover business start-up” or “ROBS more appealing to individuals seeking to use retirement funds to buy or finance a new business or franchise,” stated Adam Bergman, a partner with the IRA Financial Group.

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.

Adam Bergman is a partner with the IRA Financial Group, LLC, the markets leading provider of Self-Directed IRA LLC and Solo 401(k) Plans. Mr. Bergman is also the President of IRA Financial Trust Company, a Self-Directed IRA custodian. Mr. Bergman is the author of the books titled “Going Solo: America’s Best Kept Retirement Secret For the Self-Employed,” “The Checkbook IRA: Why You Want It, Why You Need It,” “Turning Retirement Funds Into Start-Up Dreams,” and “In God We Trust - In Roth We Prosper” available on Amazon, and is a frequent contributor to Forbes.

To learn more about the IRA Financial Group please visit our website at http://www.irafinancialgroup.com or call 800-472-0646. To learn more about establishing a self-directed IRA account with the IRA Financial Trust Company please visit http://www.irafinancialtrust.com or call 800-472-1043

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Jaclyn Baily
IRA Financial Group, LLC
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