As you know, there are a variety of ways to fund a business startup. But, without question, the single most frequent funding strategy my franchise candidates utilize is retirement fund monies without incurring taxes or penalties. The name for this strategy is Rollover for a Business Startup or ROBS for short.
From the news, you know there is a lot of talk about the Budget Reconciliation Bill. According to our friends at Guidant Financial, for those who have used ROBS or are considering using it, the good news is that ROBS will be unaffected by this bill.
If you are interested in learning more about the bill, here’s a video from Guidant’s Corporate Counsel. Keep in mind that the House and Senate must pass the bill before it can be signed into law.
Since all ROBS transactions are conducted through a 401(k) plan, note that the bill’s proposed modifications are restricted to IRAs and therefore do not apply to ROBS.
Changes to this bill are still possible because it is not yet law. Rest assured that I am keeping an eye on this bill and will provide an update if action is required.
Would you like more information regarding ROBS and other funding options? Call or text me at (706) 736-0579, reply to this email, message me at [email protected], or book a call using the yellow button.
It will be a pleasure to speak with you!
