It is impossible to use the money in an IRA no matter what until retirement

The best course of action is to not use the money that you are saving for your golden years until you are actually retired, and most people advise against doing something like this. However, that does not mean that you are prohibited from doing so when you need to. Just know that any dipping into these savings before the age of 59 and a half brings about a penalty for early withdrawal of 10%, and there is a high chance Uncle Sam will also ask you to pay income tax on that amount.

So in order to benefit from all the money you have saved up over the years, the better course of action is to not touch it until you are retired. After all, that’s what the “R” in IRA stands for!

However, there are a few exceptions to the no-touch rule until a certain age, and they apply to both the traditional IRA and the Roth IRA as well! These two retirement accounts waive the penalty given to early withdrawals if you are purchasing your first home or paying for higher education expenses (certain limitations apply).

That being said, if you think you may reach a point where you will need to make early withdrawals, you should look into a Roth IRA rather than a traditional one or a 401(k), as the Roth accounts are much more flexible with their rules when it comes to what you will be doing with your saved-up money.

In the case of a Roth IRA, the IRS allows penalty-free and tax-free withdrawals from the contributions made to the account for any reason you may need them and at any time you may need them. Thus, if you only want one retirement account, you should consider this, as it is a great asset to have even if you do not end up using it.