Why Suze Orman Says Tapping Retirement Savings Early to Cover Emergencies Is a Bad Move

After all, if you have thousands of dollars sitting in a retirement plan, you can always take a withdrawal should an immediate need for cash arise, right? While you might get away with raiding your IRA or 401(k) early, doing so could result in a world of unfavorable consequences, insists financial expert Suze Orman. The problem with tapping an IRA or 401(k) ahead of retirement is twofold.