There are ways to tap tax-deferred retirement savings without
paying the 10% penalty levied on withdrawals before age 59 1/2.

REASON                  DESCRIPTION

HIGHER EDUCATION        College tuition expenses for yourself
                        or family members

FIRST HOME              You can take up to $10,000 in your
                        lifetime

MEDICAL BILLS           If expenses exceed 7.5% of adjusted
                        gross income

MEDICAL INSURANCE       Only if you're receiving unemployment
                        compensation for more than 12 weeks

DISABILITY              Must be totally and permanently disabled

DEATH                   Distributions to beneficiary upon account
                        owner's death

RULE 72(T)              Annual withdrawls that last for 5 years
                        or until age 59 1/2--whichever is longer

55-PLUS RULE            If you have left your company and are
(for 401ks only)        55 or older, you may take out as much
                        money as you want


SOURCE: SALOMON SMITH BARNEY, BUSINESS WEEK