Other benefits of a 401(k) plan

Among various benefits, here's another: The plan can permit loans to the owner within certain legal limits.

Currently, as of 2007, an owner can borrow from his or her own account up to 50% of the value, with a maximum loan of $50,000. This money can be used for any purpose, including to cover a business' cash flow shortfall, for example.

Be sure to check with your financial, tax and legal advisors about what action is best for you.