Fit Small Business: Get Your Business Into Shape! › Forums › Small Business Finance Forum › Regarding the topic of ROBS-C-corp partially funded with IRA money › Reply To: Regarding the topic of ROBS-C-corp partially funded with IRA money
This is a great question! Technically the tax attorney is right. You’re beholden to what the valuation is, but it must be a current valuation. You can’t pay out money based on what the original 5500 valuation was, because your money wouldn’t be increasing or decreasing. If your current valuation is at a certain level then there isn’t any taking less money in that scenario. You have to pay out the right amounts on the valuation at the time you need to sell the shares. Otherwise the business would be getting a huge benefit without paying taxes or withdrawal penalties, which is a big no-no and you’d fail any potential ROBS audit by the IRS in the future.