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BusinessWeek is reporting in May 31-Jun 6, issue p 52:

Financial advisors have been telling people how to use their 401Ks to fund a business start up. You create a new company and set up a 401K plan. Then you move your existing 401K to the new company's 401K and use the funds to purchase stock in the new company.

BW is reporting the IRS is taking a close look at this kind of rollover. But sounds like it might be a nifty loophole for those looking to start their own business.
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