Allowing for a 1 year holiday on the early annuity withdrawal tax will create its own stimulus. There are many Americans who have a hard time paying off debt, refinancing their homes (because of prices dropping, and underwater mortgages), or could use the money to go back to school debt free.
The money is just sitting there propping up corporations that are holding cash at record levels anyway. This would not hurt stock confidence as much as one would think because of the idea of a stimulus.
Under this idea, people would have to make a claim on their tax return stating why they are using the money. Acceptable uses would include things like refinancing, school, debt relief, charitable giving, investment, etc.
The decrease retirement saving will be offset by the surge in the economy.