I'll be the first to admit that life has a way of throwing you curveballs when you're seemingly the least prepared for them. According to the Annual Transamerica Retirement Survey, 27% of people with retirement accounts have needed to take early withdrawals. While it might be the last and only option, early withdrawals from your retirement accounts are costly and should be avoided. Here's why.

Retirement accounts are designed for exactly that: retirement. Part of the reason you receive tax breaks with retirement accounts is the fact you agree to keep the money in the account until your retirement age. Otherwise, it would be too easy for people to get the tax break and then use the money like they would if it were in a regular savings or brokerage account.

Imagine if you could contribute to your 401(k), lower your taxable income for the year, and then withdraw the funds whenever you want. If you know the IRS, you know that's way too good to be true.

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Source Fool.com