Should you even think about using your retirement savings and investments, including your 401k to fund your small business?
The conventional wisdom would argue that you shouldn’t. That money is set aside for a reason and, if you’re engaged in wise retirement investment, it should be rather secure. Putting it on the line to build your business is just too risky–and it can come with a host of unattractive tax consequences, too.
Anita Campbell generally agrees with that sentiment in “Should You Tap into Your Retirement Account to Fund Your Business?” However, she does carve out three exceptions to the “better left alone” rule. If you’re considering dipping into your 401k to help your business, you’ll want to see your situation listed as one of those exceptions!
