Ans: You can withdraw funds from your 401(k), but whether or not this is financially prudent will depend on your circumstances. There is a withdrawal limit of $50,000, but most plans will only allow you to withdraw $10,000, which is equal to half of what you have deposited (whichever is higher). Strict criteria must repay your account. If you choose this path, you must ensure you can pay for everything on your own. Obtaining financing for a new enterprise might be difficult because most loans for new businesses require the applicant to continue working for their present company during the day. If you leave your plan while you still have outstanding loans, you must return those loans and any taxes and early withdrawal penalties that may apply.