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    Skipjack's Avatar
    Skipjack Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 28, 2008, 11:32 AM
    Using 401k funds to start a business
    Hello - I'd appreciate some help here. I'm leaving my present F/T job to start my own machine shop and I'd like to know if there is a consideration in the laws regarding 401k for doing this?

    Thanks! - Skip
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 28, 2008, 11:35 AM
    Nope. If you use the funds you will have to pay the 10% penalty and any tax liability.
    Skipjack's Avatar
    Skipjack Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 28, 2008, 05:15 PM
    Scott,

    Thanks a bunch man! Well, the business will foot this as it's first bill. -Skip
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