Rollovers as Business Startups (ROBS) Unlocks Your Retirement Account Tax-Free!

Did you know your retirement account funds could drastically go down if the stock market crashed right before you started drawing them? When you’re over 70 years old, will you have time and energy to start working again?

Well, Rollovers as Business Startups (ROBS) allows you to legally do what SelfDirected IRAs don’t - Leverage your retirement account to generate income you can actively use without being taxed.

In this episode of the Hidden Money Podcast, Paul Cook of Guidant Financial educates us on the exact way the tax code allows this little-known tool to both leverage your retirement account as well as generate more money under an IRS-supported tax shield.

Disclaimer: The content of this podcast is not legal advice and is meant for educational purposes only.

In this episode, we discuss

• What ROBS is and how it works

• How ROBS can still allow for tax planning despite generating taxable income via W2s.

• The best tax strategies for a C Corp, including accruals, write-offs, and salary decisions.

• A case study of a client who exited a business started with ROBS, highlighting the tax implications of not planning with ROBS initially.

• The benefits of selling a business as a stock sale in a C Corporation.

• How age and exit strategies affect the use of ROBS, including the option to fund a second business closer to retirement age.

• The risks of business failure with ROBS and the importance of having a solid business plan and possibly tying debt to the initial investment.

• Managing cash flow fluctuations when owning a business through ROBS.

• The control over investments in a ROBS setup versus traditional retirement accounts.

• How entrepreneurs can simultaneously grow their business and reinvest in traditional 401(k) plans.

• The costs involved in setting up and maintaining a ROBS, including initial fees and ongoing administrative fees.

• Whether real estate investments qualify under ROBS and the active versus passive participation requirements.

• Common misconceptions, emphasizing that ROBS is a legitimate investment strategy when done correctly.

• Guidant Financial’s role as a Third Party Administrator and how they support clients in setting up and managing ROBS.

To Learn More You can learn about Guidant Financial at About Us | Guidant Financial and get information on ROBS on their site page Financing Solutions Overview - Guidant (guidantfinancial.com)

If you want education on becoming a successful business owner, you can get from Guidant Financial at Chapter 1: What makes a successful business owner? - Guidant (guidantfinancial.com)

You can also contact Guidant Financial directly at Contact Us - Guidant (guidantfinancial.com) or email them at [e-mail]

To access bonus tax content, go to https://www.hiddenmoney.com/bonus

To start using the tax code as a tool to grow your wealth, schedule a call with Pine & Co. CPAs: Consultation (pinecocpas.com)

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