Here's a sample of questions my clients commonly have about retirement plan rollovers.
Withdrawals from a 401(k) account are difficult if you're still employed by the company offering the 401(k). Withdrawals are allowed in certain circumstances -- such as to avoid foreclosure -- but are still subject to income tax and sometimes to the 10% early withdrawal penalty.
In the tax world, the term "ROBS" stands for "Rollover for Business Startup." In a ROBS transaction, a person uses existing retirement account money to fund the startup of a new business, and if done right, the transaction is tax-free.
Should I use money from a retirement account to pay for start-up costs? I think most advisors would say this is a bad idea, and I generally agree.