Solved
How to properly document a "Rollover as Business Startup" (ROBS) transaction to avoid taxes and fees to the IRS?
1. Create a new C corporation, a common business structure.
2. Set up a company 401(k) plan for your new C corporation.
3. Roll your existing retirement funds into the new company 401(k) retirement plan.
4. The company 401(k) plan buys your C corporation’s stock.
5. The funds from the stock purchase can be used to operate your business.
In step 4 of this process, what documentation/forms are required by the IRS to document the purchase of the C-Corp stock after the funds have been withdrawn from the 401(k) retirement plan?
2. Set up a company 401(k) plan for your new C corporation.
3. Roll your existing retirement funds into the new company 401(k) retirement plan.
4. The company 401(k) plan buys your C corporation’s stock.
5. The funds from the stock purchase can be used to operate your business.
In step 4 of this process, what documentation/forms are required by the IRS to document the purchase of the C-Corp stock after the funds have been withdrawn from the 401(k) retirement plan?
