To help the American citizen who is able to make ends meet by utilizing their IRA funds instead of going into debt, a moratorium should be put in place on the 10% penalty incurred when making an early withdrawal from their IRA accounts. The individual will still have to claim the amount taken out early as income and pay income taxes on it at standard rates, but the 10% penalty should be waived for the years 2011 through 2014. This will keep the individuals who have this option from going into further debt caused by the penalty and the possible interest incurred by unpaid taxes due to not being able to pay the penalty.
This will help both the citizen and the economy as it will keep bills paid and keep them from damaging their personal credit.