Under certain conditions, the new tax law also permits penalty-free withdrawals from I.R.A.'s to pay for higher education.

Early retirees can arrange a penalty-free withdrawal from a retirement account before 59 1/2, but complex rules require a minimum five-year payout to avoid a 10 percent penalty.

Families with less than $40,000 a year in income could make tax- and penalty-free withdrawals from Individual Retirement Accounts for housing down payments.

They also appear to be moving toward penalty-free withdrawals of individual retirement accounts for first-time home buyers and tax incentives for businesses willing to make capital investments.

The statement came as the House and the Senate passed tax-relief legislation for victims of the storm, which will allow penalty-free withdrawals from individual retirement accounts.

His results come as Congress is about to consider amendments the I.R.A. rules, including one for penalty-free withdrawals by people buying their first homes.

Households could also gain financial flexibility, namely the ability to make penalty-free withdrawals for certain purposes, including medical and college expenses.

Also keep in mind that if you are under 59 , converted Roths must be open at least five years before you can make penalty-free withdrawals.

Below-average rates are also common among certificates that adjust and that have unusual features, like penalty-free withdrawals or interest paid up front.

Ms. Zang took $10,000 from her individual retirement account - a penalty-free withdrawal is allowed for first-time home buyers.