Has anyone used ROBS or paid the IRS Tax+Penalty?

searcher profile

July 23, 2024

by a searcher from Texas Tech University in Austin, TX, USA

Hello-

I am in process of determining to use my traditional IRA as a 401k/ROBS conversion C-Corp route for SBA loan or deciding if I use the traditional or the ROTH and take the early withdraw on IRA earnings w the income tax hit + 10% penalty. I have already pulled contributions.

Does anyone have experience deciding this? The business itself does $1.5MM annually / 580k EBITDA. FF&E $188k. I am buying the real estate also $1.6MM for total asking $3.1MM. Trying to avoid ROBS by hoping I can avoid the LLC/Scorp income tax, Is that possible with enough deductions as a pass thru S-Corp? Will the FF&E support it?

Appreciate any advice

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
^redacted‌ thank you for the tag. We have financed many deals with clients using ROBS along with an SBA loan. If you need assistance here we would be happy to chat with you. You can reach me here or directly at redacted
commentor profile
Reply by a searcher
from Vanderbilt University in Orlando, FL, USA
Hi Scott - if you'd like to chat with one of our CPAs I am happy to make an introduction. This can get tricky and fact specific. My email is redacted
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