Glossary · Your money in the deal
Retirement account funds
In short
Money held in your 401(k), IRA, or other qualified retirement plans. These funds can sometimes be used as equity for your business purchase.
What it means in a deal
You can use retirement account funds for your equity injection, either through a direct rollover to a Self-directed IRA or by utilizing a Rollovers for Business Start-ups (ROBS) plan. Each method has distinct tax implications and rules. Consult a financial advisor to understand the specific risks and benefits.
Related terms
Common questions about Retirement account funds
- 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- Can funds from a retirement account, like a 401k, be used for equity injection if properly withdrawn?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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