Using 401K to fund REI

[Mike B.]

Hello BP Members,

I'm new to REI and live in the San Antonio, TX area. Has anyone here on BP withdrawn 401K funds to begin a REI career? I am not talking a Self Directed IRA, as I want cash flow now. Also, can you describe the penalties, taxes, etc.

Thank you all.

[Tyson Hosey]

I just did a 401k loan, not withdraw. no penalties, 4.5% that gets paid back to the balance of my 401k (not the bank)

there are some other specifications to it, like I could only take 50% of my total balance as a loan, they take it right out of my paycheck as repayments, if I quit or get fired I have to pay back the balance of the loan.

read up on it, but it's a way to avoid the penalties