Specialists in ERISA and Employee Benefits Law​

ROBS Arrangements

Conference Room

Our attorneys are uniquely experienced and highly regarded in working with employers who want to utilize an exception to the prohibited transaction rules commonly referred to as a “Rollover as Business Start-Up” (“ROBS”).  The transaction involves rolling qualified retirement savings, usually a traditional IRA, into a new retirement plan to capitalize a corporation that will operate the new business.

The plan’s investment in company stock, known as qualifying employer securities, or “QES,” can provide the ROBS owner a significant amount of funds for the start-up or acquisition. However, the transaction and subsequent plan sponsorship require careful attention to complex tax and retirement plan regulations.

We provide advice in ROBS transactions regarding:

  • Requirements for a compliant ROBS arrangement
  • Valuation of the QES–when, how, why
  • ROBS exit strategies, including treatment of gain as “net realized appreciation”
  • Help correcting ROBS mistakes, plan failures, and prohibited transactions
  • General retirement plan compliance, irrespective of the ROBS feature, which is often challenging for start-up companies