Having an emergency stash of money can always come in handy. We never know when hard times are going to hit, and when they do, we don’t want to be caught off guard. Using a Roth IRA and your emergency fund together is an option that many people are turning today as the economy spirals downward. With a Roth IRA, you can withdraw funds without being penalized (some of the time), making using a Roth IRA and your emergency fund almost the same thing.

Withdrawing money from a retirement savings is always a risky endeavor, however. You may be wondering if using a Roth IRA and your emergency fund is even worth it in the long run. There are several things to consider before you make any major decisions. Even if the money is easy to get to, think twice before you yank it out. Using a Roth IRA and your emergency fund before you reach retirement age should only be done if none of your other options are working out. Many people benefit highly from withdrawing emergency funds from their IRA—they are given access to free money that they would not have been able to get to otherwise. When emergencies arise, this option of withdrawing from your IRA early can be a tremendous blessing. However, it is important that you don’t get too comfortable with taking money out of your retirement fund—it should not become a habit. Retirement lasts a long time, and it generally takes even longer to save up for it. If you can avoid using a Roth IRA and your emergency fund, do it. You will be grateful later on, even if you are inconvenienced now because of it.

Before you even consider using a Roth IRA as your emergency fund, make sure you know just how long it will take you to actually be able to hold that money in your hands. Some people only have to wait a few minutes, but some may have to wait up to several weeks. If you can meet your emergency needs quicker than it takes to cash your money out, don’t withdraw the money. Secondly, analyze the nature of your Roth investments. If you have been very conservative with your contributions, withdrawing money in case of an emergency may not be such a bad idea. However, if you have all sorts of stock holdings and other types of investments, withdrawing money early may not be the best option. You don’t want to be selling stock that is undervalued now but that may be much more valuable in the future.

Using a Roth IRA and your emergency fund simultaneously can be a very good option, but it also can be a very bad option. Just know that there is no one solution for every person. Every situation is different and requires a different course of action. Make sure you talk to a professional before you make any decisions regarding something as important as your retirement savings.