Opening a ROBS Account

[Chip Chronister]

I would like some advice about a robs ira I have been told that you have to be an active investor but what is the definition as an active investor mean? An IRA specialist told me that he has rentals in his robs account but when I call the person who can roll over my account (she didnt act very confident) said that I had to work in the business 20 hours and I have a W2 job. Can someone with a robs please help me

[Brian Eastman]

@Chip Chronister

The ROBS platform requires an active business providing a product or service and generating earned income.  Rental property produces passive rental income and is not suitable.  Even if you could structure something like a property management company, the ROBS would work well for that service, but would be a very inefficient means to hold your own rental properties.   

And yes, some people do things that are either non-compliant and/or the wrong tool for the job, so I am not surprised you were told what you relay in your note about rentals.

We typically establish ROBS plans for people wanting to do active real estate development, construction, or flipping, or capitalize some other type of active business like a restaurant, auto repair shop, software startup, gym, etc.