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So here's one I've never heard of before that seems like a completely terrible idea unless you have a rock solid business model. It's called "Roll Overs as Business Startups" or ROBS. Have any of you heard of this?
"A ROBS structure starts with the creation of a C corporation. That new corporation then sponsors a 401(k) plan that explicitly provides for the acquisition and holding of qualifying employer securities. An entrepreneur then rolls all or part of their existing and eligible retirement funds into the new 401(k) plan. This 401(k) plan, also referred to as an eligible individual account plan, in turn invests in the stock of the new corporation. The corporation, now flush with funds, acquires a small business or franchise on behalf of the 401(k) plan."
"A ROBS structure starts with the creation of a C corporation. That new corporation then sponsors a 401(k) plan that explicitly provides for the acquisition and holding of qualifying employer securities. An entrepreneur then rolls all or part of their existing and eligible retirement funds into the new 401(k) plan. This 401(k) plan, also referred to as an eligible individual account plan, in turn invests in the stock of the new corporation. The corporation, now flush with funds, acquires a small business or franchise on behalf of the 401(k) plan."
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