EXAMPLE TAX STRATEGY: ROBS Plan

Rollovers as Business Start-Ups (ROBS) are arrangements in which current or prospective business owners use their 401(k), IRA or other retirement funds to pay for new business start-up costs, for business acquisition costs or to refinance an existing business. It allows you to use these proceeds to start a business without paying tax or penalties. For one of my clients it was more than $40,000!