• The Pitfalls of “Rollovers as Business Startups” Transactions
  • June 26, 2016 | Author: Benjamin L. Rackliffe
  • Law Firm: Pannone Lopes Devereaux & O'Gara LLC - Johnston Office
  • Versions of qualified plans, sometimes referred to as “Rollovers as Business Startups” or simply “ROBS,” are marketed with increasing frequency to would-be business owners as a way to access tax-deferred retirement funds without paying distribution taxes, in order to cover new business start-up or acquisition costs. The promoters of ROBS products, often soup-to-nuts service providers working for a fee, market the ROBS concept as a safe alternative to traditional financing options.