skip to main contentskip to right navigation

 


Find business services, applications, and resources.   Doing Business in DC
Find business services, applications, and resources.


star
Main

star
Licenses & Permits

star
Development & Incentives

star
Tax Services

arrow
Business Planning

star
Nonprofit Planning

star
Business Resources


Panoramic - Two People Shaking Hands

Business eServices


More eServices


Retirement Accounts
Establish Your
Organization
Finance Your
Business
Tax and
Licenses
Grow and
Maintain

You may have a retirement account, such as an individual retirement account (IRA) or Keogh account, from which you can borrow. In general, this is a highly discouraged method of financing because of the tax implications.

Issues to Consider

  • Individuals ordinarily pay a 10% penalty to withdraw money before the age 59.5. There are a few exceptions, so it is important to find out the latest rules.
  • Call your certified public accountant or the Internal Revenue Service to determine the penalties associated with early withdrawal.
  • In addition to government penalties, there may be bank fees for withdrawing from your IRA or Keogh account.
  • You could end up without enough money for a comfortable retirement. Evaluate the life consequences of taking money out of your retirement savings.
Compare:
Advantages
  • The money is readily available.
  • Funds are available immediately.
Disadvantages
  • Tax penalties can be severe.

<< Back to BRC Home