Every day, we hear stories about people who can’t keep up with their bills and expenses, people who didn’t get that pay-raise they were expecting to get, and people who have lost their jobs after a company issues a mass lay-off. Unfortunately, these situations can’t usually be predicted. Despite our best preparations, sometimes life just doesn’t want to cooperate. That is why we have the option of using a Roth IRA and your emergency fund together. Sooner or later, each individual finds him or herself in a situation they can’t resolve on their own, and using a Roth IRA with your emergency fund is one of the easiest and most common ways to take care of pressing, immediate needs. However, while there are many benefits to cashing out a Roth IRA early, there are also many negative consequences that can arise. This decision should not be taken lightly.

Before you think about using a Roth IRA and your emergency fund, consider these options. Just because money is easy to get to doesn’t necessarily mean that you should take it. Withdrawing money now can come back to haunt you if you aren’t careful. Using a Roth IRA and your emergency fund should only be done if you have no other options. Saving for retirement takes years and years, and retirement goes on for years and years after that. Money that can be spent in an instant takes years to save up for. In considering whether to use a Roth IRA as your emergency fund, first decide whether you can live without it or not. Remember that you are going to want to have a comfortable retirement when the time comes.

Another thing to consider before using a Roth IRA and your emergency fund is how quickly you can access the money in your account. Some people have to wait several weeks before they can cash a check and many times the wait is too long for it to even be worth it. If your retirement saving is made up mostly of contributions and not investments, withdrawing these funds may actually be a good option. However, if you do have a lot of stocks and investments, allowing these to multiply and become more valuable will be a much better long-term option.

However, in situations of unexpected emergencies, using a Roth IRA and your emergency fund can be a tremendous help. Sometimes feeding your children is more important than saving for something that is decades away. Having that access to “free” money can help you get back on your feet when your only other option would be to get further and further into debt.

Using a Roth IRA as your emergency fund can be both a very good idea and a very bad idea. There is no one solution for every person or situation. Every situation is different and requires a different course of action. Make sure you talk to a professional before you make any decisions regarding your retirement savings.