{"ok":true,"canonical_url":"https://dealroom.so/glossary/self-directed-ira","api_url":"https://dealroom.so/api/public/glossary/self-directed-ira","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":"self-directed-ira","term":"Self-directed IRA","group":"Your money in the deal","definition":"An Individual Retirement Account that allows you to invest in a wider range of assets, including private businesses, beyond typical stocks and bonds. It's a way to use retirement funds for your equity injection.","what_it_means":"With a Self-directed IRA, you can directly invest a portion of your retirement funds into your new business, acting as part of your equity injection. This approach requires careful compliance with IRS regulations to avoid prohibited transactions and potential penalties. It's distinct from a ROBS plan.","url":"https://dealroom.so/glossary/self-directed-ira","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":"rollovers-for-business-start-ups-plan","term":"Rollovers for Business Start-ups plan","url":"https://dealroom.so/glossary/rollovers-for-business-start-ups-plan"},{"slug":"irs-regulations","term":"IRS regulations","url":"https://dealroom.so/glossary/irs-regulations"}],"related_questions":[{"question":"How does a lender verify equity injection from a Self-Directed IRA (SDIRA) structured as a loan to the business?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-self-directed-ira-sdira-structured-as-a-l"},{"question":"Can I use funds from a Self-Directed IRA (SDIRA) for my equity injection if structured as a loan to the business?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-self-directed-ira-sdira-for-my-equity-injection-if-structured-as-a-"},{"question":"Can a buyer use funds from a Self-Directed IRA (SDIRA) for their equity injection if structured as a loan to the business?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-use-funds-from-a-self-directed-ira-sdira-for-their-equity-injection-if-structu"},{"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"},{"question":"Can I use funds from a Roth IRA or 401(k) without penalty for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-roth-ira-or-401-k-without-penalty-for-my-equity-injection"},{"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"}]},"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 — Self-directed IRA","url":"https://dealroom.so/glossary/self-directed-ira","source_type":"DealRoom Data"}}