What to Look for in a Provider When Considering a (Rollovers for Business Startups) ROBS Plan
DRDA CPAs & Business Consultants provide a self-directed 401k plan - The BORSA Plan (Business Owner's Retirement Savings Plan)- which is a ROBS (Rollovers for Business Startups) type structure. This type of structure allows individuals to access retirement funds without tax or penalty regardless of age to use as equity in a business start-up, purchase, or recapitalization.
The issue of using retirement funds in this manner is allowed - the IRS, Department of Labor and Small Business Administration all agree that this is approved. The scrutiny, by the IRS, is in the on-going compliance of the plan.
Keeping your ROBS structure compliant is the main consideration. The IRS produced what is called the ROBS Memorandum that lays out those compliance points quite clearly.
DRDA, a 34 year old CPA firm, has always been viewed as the most conservative provider of this type of structure. We have to be. We have skin in the game like no other provider (thru our license) to make sure our clients understand and are capable of maintaining this ongoing component of the plan.
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