<prompt> Human: Someone said this is possible. Would it be more beneficial to put my 8k emergency fund into the IRA versus a bank savings account?  <response>: First, only a ROTH IRA can be used an an emergency fund. This is because Roth IRAs allow you to withdraw your contributions at any time in the future penalty tax free not really tax free because you paid taxes on the money before you contributed, but no additional tax is owed. You would incur penalties if you withdraw any gains.Traditional IRAs would incur a penalty and would require taxes be paid. 