The Downside of Using Retirement Account Funding (401(k) or IRA) for Small Business Funding and Start-Ups
When it comes to funding small businesses or start-ups, many entrepreneurs turn to their retirement accounts for the capital they need. Retirement accounts such as 401(k)s and IRAs offer the opportunity to access funds without having to take out a loan or issue stock. While this is an attractive option, there are some potential downsides to accessing retirement funds to finance a business.