ROBS FAQs
Using a Rollover-for-Business-Startup (ROBS) for your business isn’t difficult, yet it is a complicated process in regard to remaining compliant with IRS guidelines. It is best to choose a ROBS provider that not only understands the process, but has the ability and expertise to answer questions as they arise. Here you’ll find a list of the more common ROBS questions.
Do I have to continue to use a C-Ccorp to use this plan?
Yes, as long Qualified Employer Securities (Company Stock) are held under the name of the Plan.
What happens if I get audited?
Our Rainmaker® Guarantee with Audit Shield protection ensures that if you follow certain terms and conditions, Benetrends will protect your plan in the rare case that there is an inquiry or audit by the Internal Revenue Service or Department of Labor. In the 40+ years we’ve been doing this, we have NEVER had a plan disqualified.
Do you have an Exit Strategy?
Selling the Plan’s stock shares is always the goal. We refer to this as an Exit Strategy. Please consult with your Benetrend’s representative when you are thinking about buying or selling Plan shares.
What are my current fees and what do they cover?
Please refer to your current service and fee schedule for details about exact price and services.
Is your C-Corp an Operating Company?
Your C-Corp must continually meet the definition of an Operating Company to have a properly structured ROBS Plan.
Do I have to supply you with annual census and year-end information?
Yes, this is vital information that we need annually to properly keep your Plan and investments in compliance with the I.R.S. and D.O.L. This is the foundation of all the services we supply and the more and better information we have from you, the better job we can do to protect the Plan.