Comments on: The End of Small Business Financing with IRA and 401k Funds? (Part 2) http://www.jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/ The No-B.S. Guide to Building Real Wealth in Your Self-Directed IRA or Solo 401k Wed, 11 Apr 2012 17:02:28 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: admin http://www.jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/comment-page-1/#comment-1469 admin Thu, 07 Jan 2010 20:40:28 +0000 http://jeffnabers.com/?p=1077#comment-1469 Al, The IRS's opinion doesn't matter on this issue, believe it or not. Because of Presidential Reorganization Act No.4, interpretations of prohibited transaction issues are the exclusive domain of the Department of Labor (DOL). While it may just seem like a bunch of confusing bureaucracy, it does matter. The IRS isn't allowed to opine on this issue (prohibited transactions of retirement plans specifically) with any more authority than Joe Blow down the street. The DOL's stance is clear. Read all three posts on this subject and you should have it all cleared up. Regards, Jeff Al,

The IRS’s opinion doesn’t matter on this issue, believe it or not. Because of Presidential Reorganization Act No.4, interpretations of prohibited transaction issues are the exclusive domain of the Department of Labor (DOL).

While it may just seem like a bunch of confusing bureaucracy, it does matter. The IRS isn’t allowed to opine on this issue (prohibited transactions of retirement plans specifically) with any more authority than Joe Blow down the street.

The DOL’s stance is clear. Read all three posts on this subject and you should have it all cleared up.

Regards,

Jeff

]]> By: al http://www.jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/comment-page-1/#comment-1468 al Sun, 27 Dec 2009 09:32:30 +0000 http://jeffnabers.com/?p=1077#comment-1468 There is no need to "read between the lines". The IRS's opinion on the matter is clear: "Although we do not believe that the form of all of these transactions may be challenged as non-compliant per se, issues such as those described within this memorandum should be developed on a case-by-case basis." "For purposes of this memorandum, these arrangements are known as Rollovers as Business Startups, or ROBS. While ROBS would otherwise serve legitimate tax and business planning needs, they are questionable in that they may serve solely to enable one individual's exchange of tax-deferred assets for currently available funds, by using a qualified plan and its investment in employer stock as a medium. This may avoid distribution taxes otherwise assessable on this exchange." Remember that tax AVOIDANCE is 100% legal. It is tax evasion that is illegal. There is no need to “read between the lines”. The IRS’s opinion on the matter is clear:

“Although we do not believe that the form of all of these transactions may be challenged
as non-compliant per se, issues such as those described within this memorandum
should be developed on a case-by-case basis.”

“For purposes of this
memorandum, these arrangements are known as Rollovers as Business Startups, or
ROBS. While ROBS would otherwise serve legitimate tax and business planning
needs, they are questionable in that they may serve solely to enable one individual’s
exchange of tax-deferred assets for currently available funds, by using a qualified plan
and its investment in employer stock as a medium. This may avoid distribution taxes
otherwise assessable on this exchange.”

Remember that tax AVOIDANCE is 100% legal. It is tax evasion that is illegal.

]]> By: Kalum Nestor (kalumnestor) 's status on Thursday, 05-Nov-09 05:26:21 UTC - Identi.ca http://www.jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/comment-page-1/#comment-1464 Kalum Nestor (kalumnestor) 's status on Thursday, 05-Nov-09 05:26:21 UTC - Identi.ca Thu, 05 Nov 2009 05:26:29 +0000 http://jeffnabers.com/?p=1077#comment-1464 [...] Rollovers as Business Startups. http://jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/ [...] [...] Rollovers as Business Startups. http://jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/ [...]

]]> By: Jeff Nabers http://www.jeffnabers.com/2009/10/19/the-end-of-small-business-financing-with-ira-and-401k-funds-part-2/comment-page-1/#comment-1467 Jeff Nabers Mon, 19 Oct 2009 19:43:23 +0000 http://jeffnabers.com/?p=1077#comment-1467 Cred, Everything you need to know about ROBS is covered in this 3-part post. Part 3 (the final installment) is coming soon. :-) Jeff p.s. If you haven't already done so, you can subscribe via RSS or Email by using the big buttons on the top right, and this way you'll get notified of each new blog post right away. Cred,

Everything you need to know about ROBS is covered in this 3-part post. Part 3 (the final installment) is coming soon.
:-)

Jeff

p.s. If you haven’t already done so, you can subscribe via RSS or Email by using the big buttons on the top right, and this way you’ll get notified of each new blog post right away.

]]>