ROBS 401(k) Form 5500: Skip This and Get Audited Forever

Jill asks John: is she legally required to file Form 5500 annually for her ROBS corporation? John's answer walks through his own ROBS structure - the one he's about to run his law practice through - and why he files Form 5500 every year, even in years he's technically exempt. In this video, you'll learn: → The ideal ROBS structure John uses: a Roth 401(k) owning 98% of a C-corp, with the individual owning 2% → Why the 401(k) must be a Roth for the tax benefit to work → Why the C-corp's Form 1120 always gets filed on time — no exceptions → The $250,000 asset exemption for Form 5500 — and why John still recommends filing anyway → The real reason to file even when exempt: Form 5500 starts the IRS's statute of limitations clock (3-6 years), just like a 1040 → What happens if you never file: the IRS can audit you into eternity → Fair market value and appraisals — when you can self-value in good faith, and when the law effectively requires a formal appraisal → How the standard changes once you have employees who aren't owners or their spouses → The appraisal cadence John recommends: a full appraisal every few years, lighter valuations in between ⚠️ Educational content only — not legal or tax advice specific to your situation. ROBS structures, Form 5500 requirements, and appraisal standards are fact-specific. Always work with a qualified attorney and administrator before making compliance decisions for your plan. Want the deeper dive on ROBS structuring? John covers valuation, fair market value, and full compliance builds inside his Inner Circle. 👉 https://www.taxreductionlawyer.com/in... Join our next Inner Circle meeting on Wednesday, July 29th at 7 pm ET as a guest: https://www.taxreductionlawyer.com/in... ──────────────── Chapters: 00:00 Intro — Jill's question about Form 5500 for ROBS 00:27 Why John structures his own ROBS this way 01:03 The ideal ROBS structure: Roth 401(k) owns 98% 01:50 Why it has to be a Roth 401(k) 02:34 Filing Form 1120 for the C-corp — always, on time 03:21 The $250K exemption — and why John files anyway 04:10 Statute of limitations: Form 5500 vs. Form 1040 05:00 Penalties for late filing, and fair market value basics 05:50 When you can self-value in good faith (solo, no valuation events) 06:40 When the standard goes up: non-owner employees 07:20 How often you actually need a formal appraisal 08:05 Bottom line: what to always file, and when to get an appraisal ──────────────── #ROBS401k #Form5500 #SelfDirectedRetirement #SoloRoth401k #TaxCompliance #CCorporation #IRSAudit #RetirementPlanning #TaxAttorney #JohnHyre