1. 59 1/2
   62
2. 65 1/2

At age 59 1/2, your IRA funds become available to you without an early withdrawal penalty.

1. 16 percent
   36 percent
2. 46 percent

Unless they can qualify for exceptions, this 46 percent pays the added income tax and penalty that go along with early withdrawal.

1. 2 percent
   6 percent
2. 10 percent

Between taxes and interest, people who withdraw their IRAs before age 59 1/2 may lose up to 38 percent of their funds to taxes and the 10 percent withdrawal penalty.

1. when paying for a funeral
   when paying for medical expenses that insurance doesn't cover
2. both of the above

Hardship exceptions can help offset unforeseen expenses, including both funeral costs and medical bills.

1. You want to buy a vacation home.
   You want to retire early and arrange for regular withdrawals for at least five years.
2. You owe back taxes.

If you want to retire early, a 72(t) Early IRA Distribution allows you to withdraw equal amounts from your IRA, once a year, for at least five years.

1. first-time home buying
   education expenses for you or your family
2. both of the above

If you haven't owned a home for at least two years, or if you or your loved ones are going to college, you can qualify for penalty-free IRA withdrawal.

1. when the investment keeps going down, not up
   when you want some cash on hand
2. neither of the above

You shouldn't withdraw funds in either of these circumstances. Most accountants wouldn't advise you to remove IRA funds when the investment is doing poorly, and if you need some quick cash, they would suggest finding another source.

1. never a good idea
   always a good idea
2. dependent on the situation

Do the math: The goal is to increase your worth and lower your debt, so if you can come out ahead by cashing out an IRA to pay off credit cards, sometimes it's a good idea. However, you might want to talk to an accountant before cashing out.

1. a potentially penalty-free way of keeping your home
   untouchable
2. collateral to offer the mortgage company or landlord

Risk of foreclosure or eviction is considered a hardship, and you may be able to withdraw from an IRA penalty-free to help you save your home.

1. any employer
   any type of IRA
2. none of the above

Not all employers or funds allow every category of early, tax-free withdrawal. Check with your human resources manager to find out what your company allows.