What is the ROBS Network™?
Well, the first question we might ask is: What is a ROBS?
Rollovers as Business Start-Ups (ROBS) are tax and ERISA (the federal employee benefits law) governed arrangements in which prospective business owners use their 401(k)retirement funds to fund new business start-up and development costs. A ROBS arrangement is a self-directed 401(k) plan that allows you to infuse equity from your existing retirement plan(s). This equity can be invested in qualifying employer securities (stock) in your company.
Once invested in the corporation, these funds can be used for the purchase of an existing business, start-up, franchise, or as working capital to pay normal corporate operating expenses without being deemed a distribution subject to tax and/or penalties. Why is it not considered a “distribution”? Because it is an investment of qualified plan funds and the IRA owner/participant has no personal access to the funds. The funds are invested in the business enterprise!
Now, about the “Network™”
The ROBS Network™ is a small group of tax and employee benefit professionals who have spent their entire careers specializing in providing tax, legal, record keeping, compliance, accounting and valuation advice to individuals and businesses who wish to set up a tax qualified employee benefit plan. Each professional is independent. Each professional provides direct professional service to his or her client and bills separately.
So why call it a Network? What is shared in common?
• This website, the information contained within it and the costs of maintaining this website and otherwise promoting the Network on behalf of its Members.
• The collective knowledge and experience of our Members shared regularly and willingly through Network conferences and continuing education.
• A shared concern that many individuals who use the ROBS technique are serviced by “promoters” of this planning technique. These “promoters” are marketing organization that act as a middleman marking up the services provided by others. Those organizations are in violation of state laws prohibiting the unauthorized practice of law and are in danger of being shut down by state bar associations. They are experts at marketing, not tax or ERISA compliance.
• A commitment (and ethical obligation) not to pay “referral fees” to franchisors or business and franchise brokers who may refer business so that the brokered “deal” can get done.
• A commitment (and ethical obligation) to charge reasonable fees for professional advice. The fees are not inflated to cover the referral fees paid by promoters.
• A commitment to professionalism. If you engage a member of the ROBS Network, you will know that you retained a professional. Your work will not be delegated to untrained clerks and call center operators and sales personnel.
Which ROBS Network Member Will I Work With?
Ultimately, you, the client decides which of the Network Members will handle your case. This is not a “group practice” or a one-stop-shop where you are assigned a “sales coordinator” who is an expert only in telemarketing techniques. Initially, when an inquiry is made to 727-460-2919, unless you express a specific preference from our list of Members, you will be contacted by one or more of the Members based on your location.