Retirement money to start investment business

I am working on starting my rental business and have saved some money. I recently had a family member pass away and left me money in their 401k account. My question is if I pull the money out I will be taxed at my bracket which is 32%. (Which would mean $25k in taxes on this money) Also maybe a penalty? Do you suggest I forget about trying to use this money for my business? I dont want to take such a big hit! Family says I should just roll it over to my 401k and forget about trying to use it to get my business up and running. I really see this as an opportunity to get my business moving!! I would greatly appreciate any thoughts on this matter. Thank you.