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This post is part of a series where personal finance expert Dan Solin looks at money moves that may seem smart in tough economic times, but are actually quite dumb. See all 12.

Rising gas and food prices, the disappearance of home equity, downsizing by large and small employers and a credit crunch are a perfect storm for cash-strapped investors. Many are tempted to tap into low-hanging fruit: their 401(k) and 403(b) plans.

Is this a good idea?

Other than as a last resort, this answer is "no."

Even in good times, the number of employees who cash out of their retirement plans is alarming. More than 45% of departing employees cash out of their 401(k) plans.

The consequences of doing so are draconian.

Continue reading Dumb Money Move No. 4: Use your 401(k) or 403(b) plan as a source of emergency funds

Dumb Money Move No. 4: Use your 401(k) or 403(b) plan as a source of emergency funds originally appeared on BloggingStocks on Thu, 07 Aug 2008 06:00:00 EST. Please see our terms for use of feeds.

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