ROBS

[Pat Sheldon]

ROBS: Rollovers as a Business Setup

Have any of you used this method to tap into 401ks/IRA's to fund a commercial venture?

Would love to hear your thoughts, THNX

[J Scott]

Originally posted by @Jeff Wallace:

Can you explain further.... What if the c corp had expenses that reduced income to zero? (Paid all profit to me as salary)

It's my understanding that this would be looked upon unfavorably by the IRS. This type of arrangement benefits you personally, but does not benefit your IRA; the purpose any IRA investment should be to benefit the IRA.

The IRS may look at this as an attempt to siphon cash out of your IRA (or use your IRA to generate taxable cash flow) without paying a penalty.