Editing 401(k) (section)

===Rollovers as business start-ups (ROBS)===
ROBS is an arrangement in which prospective business owners use their 401(k) retirement funds to pay for new business start-up costs.<ref name="irs.gov">{{cite web|url=https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project|title=Retirement News for Employers – Fall 2010 Edition – Rollovers as Business Start-Ups Compliance Project|publisher=IRS}}</ref> ROBS is an acronym from the United States [[Internal Revenue Service]] for the IRS ROBS [[Rollovers as Business Start-Ups]] Compliance Project.

ROBS plans, while not considered an abusive tax avoidance transaction, are questionable because they may solely benefit one individual – the individual who rolls over his or her existing retirement 401(k) withdrawal funds to the ROBS plan in a tax-free transaction. The ROBS plan then uses the rollover assets to purchase the stock of the new business. A [[C corporation]] must be set up in order to roll the 401(k) withdrawal.