Ever since U.S. cases of COVID-19 started multiplying back in March, the economy has been in shambles. Millions of workers have lost their jobs, while countless small businesses have closed their doors, perhaps forever.

With so many people desperate for money, it’s clear that a relief package was necessary, and so in March, lawmakers passed the CARES Act. Perhaps the most popular feature of the CARES Act was the $1,200 stimulus payment it produced, but another notable feature is the option to withdraw from a 401(k) or IRA without penalty if you’ve been impacted by the pandemic. Normally, withdrawing funds from a 401(k) or IRA prior to age 59 1/2 results in a 10% penalty on the sum that’s removed, but under the CARES Act, that penalty is waived provided you can prove you’ve been hurt by COVID-19 and your withdrawal is limited to $100,000.

It’s an option that a large number of Americans are contemplating. In fact, in a new Transamerica survey, 22% of workers have either tapped a retirement plan for money already, or are planning to do so. Millennials, in fact, are the most likely to raid a retirement plan to access money in a pinch, with 33% saying they’ve gone that route already or plan to do so. In contrast, only 15% of Gen Xers and 10% of baby boomers say the same.

But no matter your age, withdrawing from your retirement savings prematurely is a move that could wreck your golden years, and it’s one you should only consider once you’ve exhausted all other possibilities. The problem with taking an early retirement plan withdrawal If you’re desperate for money right now and have some sitting in a 401(k) or IRA, raiding that account might seem like a good solution. But doing so is a bad idea for a number of reasons.

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