Glossary · Your money in the deal
Retirement account
In short
A savings plan that provides financial benefits in retirement, often with tax advantages. These accounts can sometimes be used to fund a business acquisition.
What it means in a deal
You might use funds from your retirement accounts as part of your down payment. The most common method for an SBA deal is a Rollover for Business Startups (ROBS), which involves strict IRS rules and specific providers. Using a ROBS requires careful planning and compliance to avoid penalties.
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 Retirement account
- If I use retirement account funds for equity, what are the rules?
- What documentation is required for equity injection funds originating from a retirement account rollover?
- Can funds from a retirement account, like a 401k, be used for equity injection if properly withdrawn?
- Can funds from a retirement account, like an IRA or 401k, be used for my equity injection?
- Can I use funds from a retirement account, like an IRA or 401(k), for my equity injection?
- If I secure a loan against my 401k or retirement account, can those funds be used for equity?
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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