Self-Directed IRA (“SDIRA”) vs. Rollover as Business Start-Ups (“ROBS”)
Are you looking for ways to employ your retirement assets in a start-up business? There are two options: a self-directed individual retirement arrangement (“SDIRA”) and a rollover as business start-ups (“ROBS”). Both options allow you to put 100% of your retirement assets to work. In other words, for those with deferred tax accounts, there is no dilution from early withdrawal penalties or taxes that need to be paid upon a distribution. The investment strategy used in these two options does not involve distributions that would require a tax being paid. However, the circumstances in which each of these two options can be used are very different.
Those of you who’ve read my previous blogs and articles know that SDIRAs are an investment vehicle that is more passive in nature. So, if you are investing in a privately held existing or start-up business, you’re prohibited from being active in the business. You…
