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Can I Withdraw Money From My Retirement Account To Invest In My New Business And Avoid The 10% Penalty?

I am recently unemployed and want to start my own business. Can I withdraw money from my retirement account and avoid the 10% penalty? Where do I find the IRS rules on this kind of withdrawal?

3 Comments »

  1. avatar
    Doctor Deth Says:
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    no – and don’t forget you also have to pay income taxes on the full amount of teh withdrawal also, not just the 10% penalty – so you would need to put aside probably $25-35% of the money for taxes to be safe

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    No.

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    no you cannot.

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