{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollover-for-business-start-ups-plan","api_url":"https://dealroom.so/api/public/glossary/rollover-for-business-start-ups-plan","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":"rollover-for-business-start-ups-plan","term":"Rollover for Business Start-ups plan","aka":"ROBS plan","group":"Your money in the deal","definition":"A ROBS plan allows you to use your existing retirement funds (like a 401k or IRA) to invest in a business without incurring early withdrawal penalties or taxes. As a buyer, you care because it provides a way to fund your equity injection using pre-tax dollars.","what_it_means":"Using a ROBS plan involves setting up a new C-corporation and a 401(k) plan for that entity, then rolling over your retirement funds into the new 401(k). The new 401(k) then invests in your C-corp, providing the capital for your business acquisition. This is a complex strategy that requires specialized providers to ensure compliance with ERISA and IRS rules.","url":"https://dealroom.so/glossary/rollover-for-business-start-ups-plan","official_sources":[],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"robs","term":"ROBS","url":"https://dealroom.so/glossary/robs"},{"slug":"minimum-cash-injection","term":"Minimum cash injection","url":"https://dealroom.so/glossary/minimum-cash-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"related_questions":[{"question":"Are funds from a Roth IRA eligible for my equity injection if rolled over via a \"rollover as business startup\" (ROBS) plan?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-roth-ira-eligible-for-my-equity-injection-if-rolled-over-via-a-rollover-a"},{"question":"What documentation is required for equity injection funds originating from a retirement account rollover?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-for-equity-injection-funds-originating-from-a-retirement-ac"},{"question":"Can an SBA 7(a) loan help me start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business"},{"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 an SBA 7(a) loan be used to start a brand new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-start-a-brand-new-business"},{"question":"Can I use an SBA 7(a) loan to start a brand-new business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-start-a-brand-new-business"}]},"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 — Rollover for Business Start-ups plan","url":"https://dealroom.so/glossary/rollover-for-business-start-ups-plan","source_type":"DealRoom Data"}}