Safely Cracking The Nest Egg Early

There's a way to tap those funds without paying a penalty

Turn 59 1/2, and you can withdraw whatever you want from an individual retirement account. Touch the stash before then, however, and with a few exceptions such as disability or college bills, you'll face a 10% penalty. When combined with taxes, this means as much as half of your savings could go to the government.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.