{"ok":true,"canonical_url":"https://dealroom.so/glossary/401k","api_url":"https://dealroom.so/api/public/glossary/401k","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":"401k","term":"401k","group":"Your money in the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/401k","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"retirement-account","term":"Retirement account","url":"https://dealroom.so/glossary/retirement-account"},{"slug":"ira","term":"IRA","url":"https://dealroom.so/glossary/ira"},{"slug":"robs","term":"ROBS","url":"https://dealroom.so/glossary/robs"},{"slug":"c-corporation","term":"C-Corporation","url":"https://dealroom.so/glossary/c-corporation"}],"related_questions":[{"question":"Can I use retirement funds from my IRA or 401k for an SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-retirement-funds-from-my-ira-or-401k-for-an-sba-7-a-equity-injection"},{"question":"Can funds from a retirement account, like a 401k, be used for equity injection if properly withdrawn?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-retirement-account-like-a-401k-be-used-for-equity-injection-if-properly-w"},{"question":"What if I want to use my 401k funds, structured as a rollover, for my equity injection?","url":"https://dealroom.so/sba-7a/questions/what-if-i-want-to-use-my-401k-funds-structured-as-a-rollover-for-my-equity-injection"},{"question":"Can funds from a retirement account, like an IRA or 401k, be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-retirement-account-like-an-ira-or-401k-be-used-for-my-equity-injection"},{"question":"If I secure a loan against my 401k or retirement account, can those funds be used for equity?","url":"https://dealroom.so/sba-7a/questions/if-i-secure-a-loan-against-my-401k-or-retirement-account-can-those-funds-be-used-for-equit"},{"question":"What if my personal liquidity is low, but I have a substantial amount in my 401k that I can borrow against?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-liquidity-is-low-but-i-have-a-substantial-amount-in-my-401k-that-i-can"}]},"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 — 401k","url":"https://dealroom.so/glossary/401k","source_type":"DealRoom Data"}}