Should I withdraw money in a 401(k) to start a business? It's a minor sum that I've let sit for a while.
How big of a penalty/tax would I pay for withdrawing that amount?
Answers | 2
If you have access to other capital to start your business, I would suggest going that route. And if you would like to have a more detailed conversation about your situation, and what withdrawing from your 401(k) would look like, please feel free to reach out to me, my contact information is on my profile.
these loans are more accurately described as the ability to access a portion (usually the lesser of 50% or $50,000) of your own retirement plan money on a tax-free basis. You then must repay the money you have accessed under rules designed to restore your 401(k) plan to approximately its original state, as if the transaction had not occurred.
That would be your cheapest and easiest route to take.