Glossary · Your money in the deal
401k
In short
An employer-sponsored retirement plan that allows employees to save and invest for retirement on a tax-deferred basis. Like an IRA, it can be a source of funds for a business purchase via a ROBS.
What it means in a deal
If you have funds in a 401k from a previous employer, you can roll them into a new IRA and then use a ROBS structure to fund your business down payment. Be aware of the strict IRS rules and potential penalties for improper withdrawals. This requires professional guidance.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about 401k
- Can I use retirement funds from my IRA or 401k for an SBA 7(a) equity injection?
- Can funds from a retirement account, like a 401k, be used for equity injection if properly withdrawn?
- What if I want to use my 401k funds, structured as a rollover, for my equity injection?
- Can funds from a retirement account, like an IRA or 401k, be used for my equity injection?
- If I secure a loan against my 401k or retirement account, can those funds be used for equity?
- What if my personal liquidity is low, but I have a substantial amount in my 401k that I can borrow against?
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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