Laundromat Resource Forums Financing ROBS (Rollover for Small Business) Reply To: ROBS (Rollover for Small Business)

John Cooper

    I am using a ROBS plan to finance my first laundromat. I worked with a firm called Benetrends. They pioneered the ROBS plan. The steps are generally as follows:

    1) Set up C corporation
    2) Set up benefits plan (long term 401k savings plan for business)
    3) Set up a transfer fron 401k/IRA into benefits plan
    4) Benefits plan “acquires” stock in the company
    5) Invests said money into business
    6) Money gets transferred intop busines checking accoutn and is available.

    I also took advantage of another twist. I took the money and converted to a Roth IRA. I take the tax hit this year, but every penny of the proceeds form a sale of the business gets flipped into a ROTH IRA tax free…… Call me and I can share more details.

    John Cooper
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