These tough economic times have some people raiding their retirement savings early. You're allowed to take out some retirement money under certain circumstances. But experts warn: The move may seem like a lifeline now, but it could lead to major trouble down the road. 26-year-old Chris Fickey is getting a jump-start on saving for his golden years. He signed up for his company's 401(k) plan right after college. "I do hope to save up enough so I can retire when I'm in my mid-60's," Fickey says. Like most of us, Chris plans to leave his 401(k) money alone until retirement. But today, a growing number of consumers are in such dire straits, they're literally cashing out part of their 401(k) plans early through something called a 'Hardship Withdrawal'. Rick Meigs works for the 401(k) Help Center. "With the increased unemployment rate, the downturn in home value and home equities, I'm pretty sure that that's driving a lot of those increases," Meigs explains. Experts like Mary Jo Harper say it's a troubling trend…with some of the nation's largest plan administrators seeing double-digit spikes in cases. She's a financial advisor with Merrill Lynch. "A hardship withdrawal is something you want to consider as your very last alternative to accessing money for a specific emergency," Harper points put. In fact, by law, you can only qualify under certain financial hardships. Those include unreimbursed medical expenses, college tuition, or potential eviction or foreclosure. "The IRS and Congress don't want people depleting their retirement accounts for frivolous reasons," Meigs says. Plus, it'll cost you! Let's say you are pre-retirement age, and in the 25% tax bracket, and you need to withdraw $20,000. Not only did you lose the opportunity to grow that money in your retirement fund, but you'll be hit with $5,000 in federal income taxes. Plus, you'll likely face an additional $2,000 in penalties for taking the money out early. "You're only able to keep $13,000. Very, very painful. It sets you back on your retirement game plan even further," Harper warns. Chris knows it's a tough decision. He says, "I'm fortunate not to have to worry about that right now. But, if the situation posed itself, you have to make a decision. You have to do what you have to do, right?" Experts say hardship withdrawals are okay in the face of a true emergency. But consider other options first…like taking a loan out from your 401(k), if your plan allows. You would have to pay yourself back, but a loan faces no taxation and no penalties. If you're not facing foreclosure, experts suggest homeowners consider refinancing since interest rates are down again. A home equity loan is another possibility. "We'd recommend meeting with your financial advisor and looking at all your liabilities, looking at all your assets, shaking every tree possible, seeing if there's anything you can get before you do the hardship," Harper suggests. Chris is grateful he's not in trouble right now, but has comfort knowing his retirement savings are there in case of emergency. "It would take some very serious circumstances for me to withdraw my 401(k) early," he says. Not all plans allow hardship withdrawals, so check with your administrator if you're in need. Typically, if you withdraw money from your 401(k), you cannot make new contributions to the plan for six months. Experts warn this further limits your ability to build your retirement nest egg.