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by TomatoTomato 4962 days ago
Not necessarily, if this is a Roth-401(k), then there are certainly penalty free distribution options for your personal contributions. If not, there are legal, but backdoor, ways of "investing" your traditional-401(k) into the newly found startup corporation (a family member did this recently). I think you can also take loans against a 401(k).

Either way, please consult a CPA before taking any action.