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Can someone use their 401k to purchase business without paying penalty?

Can someone use their 401k to purchase business without paying penalty?

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Daniel,
I've worked with this on two occasions and both went well. They recommend a minimum 50k, but it probably would be better to have around 100k in your 401k. Check this out closely and understand the risks involved. The people who do this are usually not CPA or lawyers and will not guarantee in writing that the IRS will not come back on you and make you pay. Lots of people have done it and so far so good. But in one way, this is like off shore tax havens and may become a future target of the IRS.

Feb 28, 2011