Glossary · Your money in the deal
Rollover
In short
The process of moving funds from one retirement account to another without incurring immediate taxes or penalties. This is a common way to access retirement funds for your business acquisition.
What it means in a deal
For business acquisitions, a direct rollover allows you to transfer funds from a traditional retirement account into a Self-directed IRA, which can then invest in your new business. This differs from a Rollovers for Business Start-ups (ROBS) plan, which uses a C-corporation structure. Understand the specific IRS regulations governing each type of rollover.
Related terms
Common questions about Rollover
- What documentation is required for equity injection funds originating from a retirement account rollover?
- What if I want to use my 401k funds, structured as a rollover, for my equity injection?
- What are the specific requirements for using retirement funds, structured as a rollover, for a 7(a) loan equity injection?
- Are funds from a Roth IRA eligible for my equity injection if rolled over via a "rollover as business startup" (ROBS) plan?
- What are the specific requirements for a lender to document and verify an equity injection from a retirement account structured as a ROBS (Rollover for Business Startups) transaction?
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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