Taking retirement money?

I have used retirement calculators, with success. Has anyone heard of the "rule of three"? I worked for a company that had an ESOP program. Without penalty you could withdraw money in the fourth year, but only the first years money, etc. Does anyone think thats a good strategic move in a retirement program If the person can do it?

Public Comments

1. you wont get a penelty but you will get a 1099 at the end of the year and have to pay a capitol gains tax on the money you withdrew.
2. If the investment is not good for LEAVING the money in, your retirement money should not be in that investment at all. I personally don't like single stocks because the risk is too high for my taste. I have no clue what the 'rule of three' is.
3. only if you're leaving it in a pre-tax investment vehicle. Never a good idea to cash out a retirement plan. I'd say the absolute only reasons would be early retirement or to pay for medical costs for current treatment of serious illness for a spouse or child.
4. yes take it and pay the taxes and put it in a roth ira!!!