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by a searcher
1yr ago
from DePaul University
in Chicago, IL, USA
^redacted I'm in the process of making use of ROBS for an initial acquisition. If you don't have a lot of cash laying around and don't plan to have investors, it's a good vehicle as long as you understand all of the nuances that a vendor like Guidant Financial doesn't fully explain upfront unless you ask a lot of questions. In my case, I'm using an IRA that I hadn't yet converted into a Roth IRA. Once an IRA has been converted, it's no longer eligible for ROBS. Be aware that many people have strong opinions for and against ROBS, many of whom have limited knowledge. Make sure you do your own research from credible sources. I personally understood ROBS much better after speaking with attorneys specialized in ROBS.
reply
by an intermediary
1yr ago
from The University of Chicago
in Chicago, IL, USA
Check if this possible: Convert pre-tax 401(k) to Roth 401(k). Then have this Roth buy the Stock of a New C Corp. The new C Corp. then buys the Target business using the funds from the sale of its stock to the Roth 401(k). This will result in no tax when you sell the Target for gain after few years. Converting pre-tax 401(k) to Roth 401(k) will create taxable income. I can think of a way to create losses to offset this gain.