 TITLE: Should I Withdraw Money from My 401(k) or IRA? CONTENT: What Is a 401(k) or IRA Withdrawal?\n-----------------------------------\nTypically, an early withdrawal from a 401(k) or IRA can be done when you're facing what the IRS describes as \"an immediate and heavy financial need.\"\nWhat are the circumstances when you might qualify for a 401(k) withdrawal before age 59½? Examples include:\n*   Out-of-pocket medical expenses\n*   Home purchase\n*   College tuition, dorm fees and related costs\n*   Prevention of an apartment eviction or home foreclosure\n*   Funeral expenses\n*   Some home repairs\nFor a traditional IRA, you might be eligible for a withdrawal before age 59½ to:\n*   Cover expenses related to a birth or adoption\n*   Pay health care expenses that can't be reimbursed\n*   Make a first-time home purchase\n*   Cover college expenses\n*   Pay for health insurance when you're unemployed\nIf you withdraw from a 401(k) plan, you'll pay a 10% penalty and income taxes on the amount withdrawn. When you withdraw from a traditional IRA, you'll pay a 10% penalty on the amount withdrawn.\nIf you have a Roth IRA, you can often make a tax-free and penalty-free withdrawal before age 59½ for certain things, such as a first-time home purchase, birth or adoption expenses, or college costs. Otherwise, taxes and penalties likely will kick in if you withdraw money before age 59½.\nWithdrawals from all of these accounts also are allowed when an account's owner dies or becomes disabled. END