{"ok":true,"canonical_url":"https://dealroom.so/glossary/401-k-retirement-fund","api_url":"https://dealroom.so/api/public/glossary/401-k-retirement-fund","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"401-k-retirement-fund","term":"401(k) Retirement Fund","group":"Your money in the deal","definition":"A tax-advantaged retirement savings plan offered by employers, allowing employees to contribute a portion of their salary before taxes.","what_it_means":"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.","url":"https://dealroom.so/glossary/401-k-retirement-fund","official_sources":[],"related":[{"slug":"robs","term":"ROBS","url":"https://dealroom.so/glossary/robs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"capital-contribution","term":"Capital Contribution","url":"https://dealroom.so/glossary/capital-contribution"}],"related_questions":[{"question":"Can I use my existing 401(k) retirement funds as an equity injection without penalty?","url":"https://dealroom.so/sba-7a/questions/can-i-use-my-existing-401-k-retirement-funds-as-an-equity-injection-without-penalty"},{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can I use funds from a retirement account, like an IRA or 401(k), for my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-a-retirement-account-like-an-ira-or-401-k-for-my-equity-injection"},{"question":"Can I use funds from a retirement account, like a 401(k) or IRA, for my equity injection without tax penalties?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-retirement-account-like-a-401-k-or-ira-for-my-equity-injection-with"},{"question":"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?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-retirement-account-like-a-401-k-be-used-for-my-equity-injection-if-rolled"},{"question":"Can 401(k) or IRA funds be used for my SBA 7(a) loan down payment?","url":"https://dealroom.so/sba-loans/basics/can-401-k-or-ira-funds-be-used-for-my-sba-7-a-loan-down-payment"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — 401(k) Retirement Fund","url":"https://dealroom.so/glossary/401-k-retirement-fund","source_type":"DealRoom Data"}}