So, you used a ROBS (Rollover as Business Startup) plan to buy your campground—congrats! You turned your retirement savings into a thriving business instead of letting it sit in a mutual fund collecting dust. But now you’re realizing something: ROBS plans are expensive to maintain, restrictive, and come with a serious lack of flexibility.

Here’s the kicker—most providers love to help you set up a ROBS plan, but they rarely talk about how to get out of it. Why? Because they make money keeping you in it. But exiting your ROBS plan strategically can save you a fortune and give you more control over your financial future.

Let’s break down three proven exit strategies so you can reclaim your business’s full potential.

1. Company Buyout—Let Your Campground Buy You Out

This is the cleanest and most straightforward option, but it requires one key ingredient: cash. Your campground essentially buys the stock back from the 401(k), making it fully owned by you again.

How it Works:

• Step 1: Get a third-party valuation to determine the current value of your business (no guesswork here!).
• Step 2: Your business needs enough cash to repurchase the stock from the 401(k) and deposit the funds into the retirement plan.
• Step 3: Work with an attorney to draft a legal transfer of ownership and make sure tax implications are handled properly.

Pro Tip: This strategy works best if you have strong cash reserves or can leverage a business line of credit to fund the buyout.

2. Individual Buyout—Take Back Control Yourself

If a company-wide buyout isn’t realistic, you can execute an individual buyout instead. This means you, personally, purchase the stock from your 401(k), giving you more flexibility.

Key Considerations:

• Timing is everything—you’ll want to minimize tax exposure by structuring this carefully.
• You’ll need the personal funds or financing to make the purchase.
• This option allows you to structure your exit at your own pace, without needing a massive business cash reserve.

3. Deemed Distribution—The Bold, High-Impact Move

This is the most nuanced (but sometimes most powerful) strategy. A deemed distribution happens when the stock in the 401(k) is distributed directly to you instead of being sold for cash.

How It Works:

• The IRS treats the stock distribution as if it were cash, meaning you’ll pay income tax on it.
• If you’re under 59½, you’ll also get hit with a 10% early withdrawal penalty (but don’t let that scare you—this strategy can still be financially beneficial in the right situation).
• The key here? You need cash available to cover the tax liability on the distribution.

Key Takeaway: A Strategic Exit is Essential

Getting into a ROBS plan was just the beginning. Getting out strategically is what will maximize your financial flexibility and minimize unnecessary costs.

Campground owners who exit their ROBS plans smartly have saved hundreds of thousands of dollars—so don’t leave money on the table.

If you’re ready to explore your options, Campground Accounting is here to help. Let’s figure out the best exit strategy for your campground and put your business back in your hands—where it belongs.

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Donna Bordeaux, CPA with Campground Accounting

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.