Glossary · Your money in the deal
401(k) plan
In short
A retirement savings plan allowing employees to contribute a portion of their salary pre-tax. It's relevant as a potential source of funds for your equity injection through a ROBS transaction.
What it means in a deal
Your personal 401(k) assets can be a significant source of capital for your business acquisition. If you're considering a ROBS transaction, understanding how your existing 401(k) funds can be rolled over into a new business 401(k) is crucial. Seek expert advice on the setup and compliance.
Related terms
Common questions about 401(k) plan
- Can funds from a retirement account, like a 401(k), be used for my equity injection if rolled into a new C-corp via a ROBS plan?
- Can I use my existing 401(k) retirement funds as an equity injection without penalty?
- Can 401(k) or IRA funds be used for my SBA 7(a) loan down payment?
- Can I use funds from a Roth IRA or 401(k) without penalty for my equity injection?
- Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?
- Can I use funds from a retirement account, like an IRA or 401(k), for my equity injection?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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