What is a ROBS (Rollovers as Business Startups) arrangement?

A ROBS arrangement allows certain qualified retirement funds to be invested into a business under a specific legal structure without being treated as a taxable distribution. While this strategy has been used successfully by many entrepreneurs, it involves ongoing compliance requirements and is considerably more complex than traditional financing.

Because retirement assets often represent a significant portion of a person’s long-term financial security, buyers should carefully evaluate both the opportunities and the responsibilities before moving forward.

Professional legal, tax, and retirement guidance is essential when considering this strategy.