ROBS C-Corp

[rwm221]

I had someone call me yesterday about her C-corp and ROBS. I understand that her business is funded by her 401k. She transfers money from her existing 401k to C-corp 401k. After that I am not sure about it. Is there a site or a pub that will help me.

Thank You

[TaxGuyBill]

While it can have great potential, ROBS can easily backfire. Personally, due to the risk, I would never assist a client with ROBS and would tell them to find somebody that is highly experienced with it (and NOT from some of those scammy promoters of it).

Here is an IRS link that mentions some of the potential problems:

https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project