If you don't know yet, IRS actually provides a leeway for you to use what's in your 401(k) or IRA before retirement without penalty. The trick is to do it right. Actually, it is always in my "grand plan" that after I semi-retire, I will tap into my retirement funds before 59 1/2 with considerable less tax payment.

It's possible to take regular payments from your individual retirement account and avoid paying a 10% penalty for withdrawals before you turn 59½ years old, the magic age for getting unfettered access to your retirement savings. These are called 72(t) payments for the section of the tax code that governs them.

There are strict rules: You have to take what the Internal Revenue Service calls "substantially equal" withdrawals for at least five years, or until you turn 59½, whichever period is longer. So, if you start taking withdrawals at age 56, you're on the hook until age 61. It's best to work with a financial adviser, accountant or IRA custodian familiar with 72(t) payments to set up your plan.

The payments can be risky: If you begin drawing down your retirement savings in your 50s, your nest egg might not last as long as you do. And the federal government doesn't look kindly upon mistakes made with 72(t) payments. If you take out too much money, or too little, in any given year, all your withdrawals up to that point will be hit with a 10% penalty and retroactive interest.