Glossary · Your money in the deal
401(k) Retirement Fund
In short
A tax-advantaged retirement savings plan offered by employers, allowing employees to contribute a portion of their salary before taxes.
What it means in a deal
You can use funds from your 401(k) to finance a business acquisition through a process called Rollovers for Business Startups (ROBS). This allows you to invest retirement funds without incurring early withdrawal penalties or taxes, but it's complex and requires strict compliance with IRS rules and ERISA. Seek expert guidance if considering this.
Related terms
Common questions about 401(k) Retirement Fund
- Can I use my existing 401(k) retirement funds as an equity injection without penalty?
- 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?
- Can I use funds from a retirement account, like a 401(k) or IRA, for my equity injection without tax penalties?
- 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 401(k) or IRA funds be used for my SBA 7(a) loan down payment?
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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