ROBS Arrangements (533)

General Description:

This course covers the tax rules and business venture considerations of ROBS Arrangements (Rollover-As-Business-Startup), a retirement strategy for entrepreneurs and a back-door way to finance a business. Topics include its origins in ERISA, procedures for rollover of funds from an existing 401(k)/IRA to a new ROBS 401(k) which owns a majority stake in a C corporation, and ongoing compliance concerns in the management of the subject C corporation. The course also discusses how ROBS links to franchises and why clients use ROBS arrangements.

Learning Objectives:

After completing this course the participant will be able to:

• Explain what a ROBS arrangement is and where it comes from.
• Evaluate when it makes sense to use ROBS for capital funding of a business acquisition or new business venture.
• Discuss the tax rules and management practices critical for regulatory compliance of a ROBS arrangement C corporation.
• Discuss prohibited transactions and related-party rules under §267(b) and how these impact ROBS arrangements.
• Explain how ROBS links to franchise operation and franchise accounting.
• Recognize and assess numerous subjective factors that are keys to strategic ROBS planning for clients.

Instructors:

Brian H. Baum, CPA is managing partner of Baum CPA LLC, a certified public accounting firm and tax preparation service in Colorado Springs which specializes in ROBS arrangements and franchise accounting. He is a combat veteran and has served as a business consultant and senior tax accountant with several licensed CPA firms. Mr. Baum earned his undergraduate degree in business and MBA from the University of Colorado Colorado Springs.

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