Just some food for thought from the original IRS "memo" on the subject of ROBS.  Interesting to note that the IRS then, and since, has said nothing about the issues raised in the Peek and Ellis cases.  Perhaps the IRS has run into some difficulty with the DOL and the SBA!  See: (http://www.gpo.gov/fdsys/pkg/USCODE-2008-title5/pdf/USCODE-2008-title5-app-reorganiz-other-dup102.pdf) and also see: http://www.sba.gov/community/blogs/can-your-retirement-plan-own-your-business

The entire original memo can be found at:

http://www.irs.gov/pub/irs-tege/robs_guidelines.pdf


"Although we do not believe that the form of all of these transactions may be challenged
as non-compliant per se, issues such as those described within this memorandum
should be developed on a case-by-case basis."

Also, regarding the DOL, this was stated in the 2008 Juilanelle memo:

"We have also coordinated our consideration of ROBS plans with the Department of
labor (DOL). As will be noted later, the transfer of enterprise stock within a ROBS
arrangement could raise ERISA Title I prohibited transaction issues. Although our
coordination efforts are not yet finalized, they remain ongoing."

Not much from the DOL since then!  Of course it has only been almost 6 years.

Further thoughts would be appreciated.