- ALLOWS INDVIDUALS TO USE THE MONEY IN THEIR 401(K) TO START OR PURCHASE A BUSINESS
- NO TAXESON WITHDRAWN 401(K) FUNDS
- NO EARLY WITHDRAWAL PENALTIES
- CAVEATES: MUST INCORPORATE BUSINESS, OPEN NEW 401(K) IN BUSINES, ROLL YOUR EXISTING 401(K) FUNDS INTO THE NEW PLAN (SINCE BOTH ACCOUNT ARE TAX-EXEMPT, AVOID TAX (10% PENALTY) HIT
- IRS HAS STRICT COMPLIANCE STANDARDS TO AVOID PENALTIES AND AUDIS
