Shing,

There are some restrictions on using one's own IRA funds for their own business - you could create a "taxable" event for yourself. While company 401k programs may allow borrowing - technically one cannot borrow against one's personal IRA account.

Words ‘borrowed’ and ‘paid’ in section 36(1)(iii) clearly postulate two different entities, one which lends capital and the other which borrows and pays interest. The same entity cannot be its own lender and borrower or interest can be paid to self. Therefore, interest paid by one unit of assessee to its unit cannot be allowable because it is paid and received by the same person and not by one person to another.

I am considering a 401k rollover with Benetrends.  I found startupnation while looking for advice on this very subject.  So far I have heard all the "Pro's" about using this system, no debt service while starting up the business, and paying yourself back on your schedule not the banks.  You can choose the funds to place your investment with, i.e., Vanguard, T Row Price. then contribute to it just like the one I have at my current employer.  Best of all no Business  plan to write. I have heard this form the franchise rep, the business service helping me select a business, and the rep from Benetrends, all of which don't get paid until I decide to sign on the bottom line.....my natural scepticism tells me to look before I leap.  Does anyone have an opinion weather or not this is a good idea? Are there any other options besides an SBA loan, and borrowing form family?