5 crisis questions answered

You've sent us an unprecedented number of questions about how to cope with this scary market. We've asked our top experts to help you out.

Pat Regnier, "Bottom Line" columnist

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Answer: You aren't the only one who's had this idea. President-Elect Barack Obama has proposed temporarily lifting the 10% penalty, but not the taxes, on a limited amount of early 401(k) and IRA withdrawals.

Even if such a proposal passed, tapping your retirement fund shouldn't be your Plan B. More like Plan E or F. "You can only spend a dollar once," says Alicia Munnell of the Center for Retirement Research at Boston College. "If you spend it to make a mortgage payment, it's not there when you retire."

What's more, if you've been investing for the long term in your 401(k) plan, you probably have a big chunk in stocks. You want to avoid cashing out in this beaten-down market.

How you'd make that wrenching decision depends on your personal circumstances and savings, of course. But many Americans are far behind on savings already. Munnell notes that the typical head of household nearing retirement age recently had just $60,000 in 401(k) and IRA accounts.

So after this financial crisis is over, we may still have a retirement crisis to deal with down the road.

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