You can use your 401k or IRA to start or buy a business in three main ways: cash out the funds, borrow against them, or use a rollover for business startups (ROBS). The only 401k business funding option that doesn’t result in penalties, taxes, or interest charges is a ROBS, making it an excellent way to tap into your retirement account.
A ROBS allows you to rollover your 401k or IRA to buy a business, without any penalties or immediate tax obligations. If you have $50K+ in your retirement account you can use it to start or buy a business.