Ways to Get Early Access to Your 401K

(MYFOX NATIONAL) -- Need some cash for an emergency or unavoidable big purchase? What about that nest egg you’ve been putting away?

Obviously, your 401(k) or IRA is intended to be there for the long haul. Sometimes, however, you need the money you’ve saved. Is there a way to access it without paying the huge fines levied for early withdrawal?

A recent article from US News & World Report points out there are ways to access your money early without a penalty from Uncle Sam.

According to the article, there are seven ways to access your savings without paying more than the regular amount of income tax. Those circumstances are non-reimbursed medical expenses, health insurance during unemployment, college expenses, a first-home purchase, disability, annuity payments for you or a beneficiary and financial support during active military service.

An article from CNN Money reports that a Roth IRA offers flexibility on withdrawals as well. “You may withdraw your contributions to a Roth penalty-free at any time for any reason, as long as you don't withdraw any earnings on your investments (as opposed to the amount you put in) or dollars converted from a traditional IRA before age 59 ½,” CNN Money reports. “In that case, you'll get hit with that same 10 percent penalty.”

Of course, if any of the seven circumstances listed apply to you, the important thing is that you have the financial ability to take care of yourself and your loved ones. However, it is still wise to leave the money alone until retirement if at all possible.

“We generally don't encourage people to use their retirement assets for anything other than generating income in retirement,” says Matt Havens, a financial planner with Hingham, Mass.-based Global Vision Advisors in the US News article. “Any distributions that you take from a retirement plan really interfere with the compounding process and usually have an impact later on in your retirement.”