Updated almost 9 years ago on . Most recent reply
Using 401K to fund REI
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 Has anyone here on BP withdrawn 401K funds to begin a REI career?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.
Most Popular Reply

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