Greetings, Sayla90, and welcome. You wrote:<<All of my current contibutions are in tax deferred accounts. My plans are to retire before 55 years old, about 6 years from now. I am going to increase the amount I'm investing and am not sure if I should invest in a fund after taxes to avoid the 10% penalty or will the tax deferred funds out perform the penalty. >>The answer to that question really depends on how you invest the money and your income tax rate now versus that in retirement. That question aside, are you aware that you do not have to pay that 10% early withdrawal penalty if you use "substantially equal periodic payments" to take funds from your IRA? For an explanation of SEPP, see my article "Getting the Money Early" at http://www.fool.com/retirement/manageretirement/manageretirement9.htm. Also, visit the Retire Early Home Page board at http://boards.fool.com/Messages.asp?mid=13207864&bid=112992 to read the hundreds of messages posted there on taking SEPP.Regards..Pixy
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