Glossary · Your money in the deal
In short
A ROBS plan allows you to use your retirement funds (like a 401(k) or IRA) to fund your business acquisition without incurring early withdrawal penalties or taxes. It involves setting up a new C-corporation and a 401(k) plan within it.
ROBS is a common but complex way to meet your equity injection requirement. You roll over your existing retirement funds into a new 401(k) plan established by your new C-corp, then the C-corp uses those funds to buy the business. While powerful, this structure requires careful setup and ongoing compliance; work with a specialized ROBS provider to avoid IRS penalties.
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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