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    zingerkj's Avatar
    zingerkj Posts: 1, Reputation: 1
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    #1

    Feb 27, 2007, 08:21 AM
    401 K Withdrawal
    I left my old company after 10 yrs and going to rollover that company 401, to my own.. I started my own consulting LLC company and need some capital equipment funds.. Can I take money from my new 401 and loan to my company to pay back w/o penalties?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Feb 28, 2007, 10:47 AM
    Sorry for the delay in answering; there was a glitch in the updating process on my computer.

    No, such a loan is forbidden and will be considered an early distribution with the resulting tax and penalties due.
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