Why Consider Borrowing Against the 401K?
Your 401K is meant to be saved for you to retire on, so why would you consider borrowing against it to fund your business? One reason might be that you feel it is better to borrow from yourself than it would be to borrow from a bank. Another reason you might do it is because it is the only potential source for business funding available to you. Before you borrow against your retirement savings, it is important to evaluate the pros and cons of borrowing against your 401K plan.
