 ROBS plans, while not considered an abusive tax avoidance transaction, are, according to the IRS, "questionable" because they may solely benefit one individual – the individual who rolls over his or her existing retirement 401k withdrawal funds to the ROBS plan in a tax-free transaction.Since the IRS pronouncement concerning this potentially discriminatory approach, most ROBS plans have included all participants and have provided broad-based participation for all employees.The ROBS plan then uses the rollover assets to purchase the stock of the new business.