1. 401(k) Financing Who should use 401(k) financing?
401(k) financing is when a business owner cashes in her 401(k) savings account to fund her new business.
The only cost of 401(k) financing is the tax on the withdrawn moneybut the investor has to risk her retirement savings!
Who should use 401(k) financing?
Small business owners who have 401(k) accounts.
Small business owners who are very confident about their business!
People who only need a relatively small amount of money, like a few thousand dollars.
How do I get 401(k) financing?
The first step is to consult an accountant or tax specialist to make sure that it is legal to take the money out of your 401(k), and what kind of taxes you should expect to pay.