It is always possible to tap into your retirement savings before you retire, but just remember that doing so always leaves you with a much smaller nest egg after penalties and taxes, so it's best to avoid it altogether if possible.
It is worth noting that there are a few exceptions for withdrawing money out of an IRA. You may withdraw IRA money penalty-free for qualified education expenses, but Roth earnings are taxable in this case.
Current law also allows you to withdraw as much as $10,000 penalty-free to help buy your first home. And if are disabled or you are unemployed and need funds to cover health insurance you can tap your IRA with no penalty.
|
|
|
|
Withdraw money sparingly, if ever, and never pay a penalty | Shawn Larsen, 47, has spent his career as a seismologist. Now he's thinking about biking and backpacking. Here's how he's saving to reach his goals. (more) Before you even think of leaving your job, be sure your family is covered. (more) Otis Braswell, 50, retired five years ago and cherishes the extra family time. But he's also learned an important lesson - golf isn't as much fun when all your friends are working. (more) |
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved.
Terms under which this service is provided to you. Privacy Policy
Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
| Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc. Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use. Intraday data is at least 20-minutes delayed. All times are ET. Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data. Fundamental data provided by Morningstar, Inc.. SEC Filings data provided by Edgar Online Inc.. Earnings data provided by FactSet CallStreet, LLC. |
