Say you’re itching to get a new business venture off the ground. The only thing holding you back is a lack of funds.

Strategy: Consider tapping into your IRA or 401(k). Ordinarily, this is a last resort, but it might be worth the risk if you’re convinced the business will pan out. Of course, you also must weigh the tax implications of invading your retirement savings.

Here’s the whole story: It may not be easy to obtain business financing these days. Even if a bank agrees to lend you the money—no sure thing—the loan payments will siphon off funds that could be spurring growth. And if you are looking for private investors to inject some cash, they may require too much equity or make other demands. Another possible option is to withdraw funds from your retirement nest egg. Obviously, there are dangers involved, so don’t go overboard. Be sure you’ll still have enough left for a comfortable retirement. Also, your personal circumstances matter. For example, it’s an easier call to make if you’re in line for a large inheritance or some other windfall that can replace the withdrawn retirement funds. Tax angles: If you withdraw funds from a traditional IRA or a 401(k) account, the withdrawals are generally taxed at ordinary income rates. However, any portion of the withdrawals representing nondeductible IRA contributions is exempt from tax. Plus, you’ll generally have to pay a 10% penalty tax on the taxable portion of distributions made before age 59½. Are there any other complications? Yes. To use your retirement funds to finance a new business venture, you’ll have to jump through some hoops. It helps to use a consulting firm that specializes in these deals. Expect to pay a top firm at least $5,000 for the initial transaction and over $1,000 in annual administrative fees. The arrangement must be made without violating rules for investments by a “disqualified person.” Seek expert assistance. Finally, go into the deal with your eyes wide open. Remember that you’re putting your retirement savings at risk.

Tip: If you withdraw funds from a Roth IRA in existence for at least five years, the distributions are 100% tax-free if you are age 59½ or older.