In the tax world, the term “ROBS” stands for “Rollover for Business Startup.” In a ROBS transaction, a person uses existing retirement account money to fund the startup of a new business, and if done right, the transaction is tax-free.
NOTE: I wrote this post in 2014, so be aware of its age. The advice is still good though – ROBS transactions are a bad idea. I have passed on working with a few clients through the years who were doing ROBS transactions within their business. Clients using ROBS transactions often have a hard time […]