The IRS should waive the 10% early withdrawal penalty on the use of Traditional and Roth IRA funds for cases of chronic unemployment and under-employment until the economy reaches a recovery level (suggested here at 6% unemployment for 12 mo rolling period) where saving for retirement can continue again. Ideally, this waiver should be retroactive to 2008 or 2009 to all US citizens impacted by the financial crisis, but it should at least start with the 2011 tax filing.
US unemployment and under-employment is estimated at 15-16% of US citizens based on current Census and Bureau of Labor statistics. Roughly 13% or nearly 19 million individuals could be helped by this measure. Small Business/self-employed under 59 1/2 yr are most directly impacted. Further discussion at http://wp.me/p23HZz-3.