Thanks for reaching out to us in the forums for clarification. The statement we made is accurate. Roth accounts can’t be used to setup a ROBS if you still want to be compliant with IRS rules. The IRS published a set of guidelines and it has been interpreted that the very nature of a ROBS works because you’re using a tax deferred retirement account, like a traditional 401k or IRA. Roth accounts are not tax deferred, so they don’t work for a ROBS. In fact, none of the ROBS professionals we work with will process a ROBS through a Roth account because it would be in violation of the IRS guidelines, and really would miss the entire point of implementing a ROBS to begin with.
Please let us know if you need further clarification about a ROBS.