The beauty of these instruments is that the interest they earn accumulates on a tax-deferred basis until the funds are withdrawn. IRAs offer the same tax-deferral advantages to people who do not have a company pension plan. Anyone can open an IRA, but people who are not eligible for a pension are allowed to deduct their contributions from their taxable income. Others make contributions to an IRA on a non-deductible basis. Once you start contributing, don't be tempted into spending.
Retirement accounts work only if they remain intact.
If you do need the money, consider the tax penalties. First, you must pay income taxes on the amount you've saved. At the very least, you can set up your own automatic savings plan. Ask your company's human resources department to arrange to have a reasonable amount of money deducted from each paycheck and deposit it into a savings account or money market account. And whenever you receive a bonus, tax refund or other windfall, consider putting 50 percent of it into savings.