So, you jumped into a ROBS (Rollover for Business Startups) plan thinking it was the golden ticket to funding your business—no debt, no interest, just your own retirement money fueling your dream. But now, you're realizing something no one told you upfront: Getting into a ROBS plan is easy. Getting out? Not so much.
If you’re feeling trapped in a financial maze with no clear exit, you’re not alone. The good news? Selling your business isn’t the only way out. There are three proven exit strategies that can help you regain control of your financial future—without IRS nightmares or losing everything you’ve built.
Think of this as your business buying back its own freedom. Instead of selling to an outsider, your company purchases the stock back from your retirement account—essentially transferring ownership internally.
💡 How It Works:
✅ Get a third-party valuation (no, you can’t just guess what your business is worth).
✅ Secure internal financing (your company needs cash or a loan to buy the stock back).
✅ Ensure legal compliance (aka, make sure the IRS doesn’t come knocking).
✅ Understand the tax impact before making a move.
🚀 Pro Tip: This is easiest if your business has strong cash reserves or access to a credit line for the buyout.
If your business doesn’t have the funds for a company buyout, you can personally buy back the stock instead. This lets you customize your exit based on your financial situation.
💰 Key Consideration:
Timing is everything. You’ll need to minimize tax exposure while maximizing the value of your buyout. Done right, this could be a powerful wealth-building move—done wrong, it could trigger a major tax bill.
This one isn’t for the faint of heart, but it can work if you’re prepared. Instead of buying back the stock, you simply take the stock out of your 401(k) and let the IRS treat it like a withdrawal.
⚠️ What You Need to Know:
🛑 Bottom Line: If you can’t afford the tax bill upfront, this isn’t your best option.
Most business owners only think about how to get into a ROBS plan, but the real key is having a plan to exit before you’re forced into a bad decision.
At Calculated Moves, we’ve helped business owners navigate their ROBS exits without losing their shirt (or their business). These aren’t theoretical ideas—they’re proven, IRS-recognized strategies that can give you the flexibility you need.
If you’re feeling stuck, let’s talk. The sooner you plan, the smoother your exit will be.
Click here to explore your options before it’s too late. 🚀
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Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.