Once you complete a ROBS, you’ll have an additional hat to wear as a business owner. You’ll also have to administer a retirement plan for your employees. All of your eligible employees must have the option to participate. In general, an eligible employee is anyone who is 21 years of age or older and has worked at the company for at least one year.[2]
You’ll have to notify employees when they’re eligible, allow eligible employees to make elective contributions to the plan, and take care of any employer tax obligations. That said, if you use a ROBS provider, they will handle some of these responsibilities for you, but you’re ultimately responsible for making sure you comply with tax rules.