{"ok":true,"canonical_url":"https://dealroom.so/glossary/rollovers-for-business-start-ups-plan","api_url":"https://dealroom.so/api/public/glossary/rollovers-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":"rollovers-for-business-start-ups-plan","term":"Rollovers for Business Start-ups plan","aka":"ROBS plan","group":"Your money in the deal","definition":"A specific strategy that allows you to use your 401(k) or other qualified retirement funds as equity for your business without incurring immediate taxes or penalties. It involves establishing a C-corporation.","what_it_means":"With a ROBS plan, you establish a new C-corporation, which then creates a 401(k) plan. Your existing retirement funds are rolled into this new 401(k), which in turn purchases stock in your C-corporation, funding your equity injection. Strict IRS regulations apply to ensure compliance and avoid prohibited transactions.","url":"https://dealroom.so/glossary/rollovers-for-business-start-ups-plan","official_sources":[],"related":[{"slug":"retirement-account-funds","term":"Retirement account funds","url":"https://dealroom.so/glossary/retirement-account-funds"},{"slug":"rollover","term":"Rollover","url":"https://dealroom.so/glossary/rollover"},{"slug":"self-directed-ira","term":"Self-directed IRA","url":"https://dealroom.so/glossary/self-directed-ira"},{"slug":"irs-regulations","term":"IRS regulations","url":"https://dealroom.so/glossary/irs-regulations"}],"related_questions":[{"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":"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"},{"question":"Is a comprehensive business plan mandatory for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-a-comprehensive-business-plan-mandatory-for-an-sba-7-a-loan"},{"question":"What are the minimum cash equity requirements for acquiring a start-up business with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-minimum-cash-equity-requirements-for-acquiring-a-start-up-business-with-an-sb"},{"question":"Can an SBA 7(a) loan help me start a brand new business from scratch?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-help-me-start-a-brand-new-business-from-scratch"}]},"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 — Rollovers for Business Start-ups plan","url":"https://dealroom.so/glossary/rollovers-for-business-start-ups-plan","source_type":"DealRoom Data"}}