Glossary · Your money in the deal
In short
A method to use funds from a Qualified Retirement Plan to finance a business acquisition without incurring early withdrawal penalties or taxes. It involves creating a new C-corporation and a new 401(k) plan.
Many buyers use a ROBS plan to fund their equity injection for an SBA 7(a) loan. This allows you to leverage your retirement savings, but it's a complex process requiring careful compliance with IRS and DOL rules. Ensure you work with a specialist firm experienced in ROBS structures to avoid issues that could jeopardize your loan or retirement funds.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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