Are African-Americans cutting off their noses to spite their face when it comes to retirement?

According to a new survey by COUNTRY Financial folks are tapping into their savings rather than taking on new debt which is a good thing.

"Nearly two-thirds (62 percent) of black Americans have cut back their spending and 64 percent have put less money into their savings or retirement to cope with the current economy."

However, the majority of savings are held in retirement accounts and withdrawing from your 401k can cost you big time in the form of penalties and taxes. Here are a few smart money moves you can make without helping Uncle Sam pay down the national debt ...

Adjust your current contributions. Many people were able to contribute the maximum to their 401k when gas wasn't almost five dollars a gallon. You can find extra money in your budget by contributing up to the amount of your employer match. Please take advantage of free money.

Contribute to a Roth IRA. If you have paid down debt and still have funds at the end of the year in your budget that you want to save contribute to a Roth IRA if you are eligible. You won't get to take a deduction on your contributions and you don't pay taxes when you start withdrawing in retirement. You can also have access to your principal balance penalty free after five years if you're a first time home buyer.

Loan yourself money. If your budget is really tight and the interest charges are adding up on your debt you can pay yourself the interest by taking a loan from your retirement plan. Many plans allow you to take out a hardship loan which you can then repay over a period. However if you leave your employer the loan has to be repaid immediately or it will be considered a withdrawal.

Withdrawal penalties on retirement accounts carry a 10% penalty and are taxed as ordinary income. A ten thousand dollar withdrawal can add up to four thousand dollars in penalties and income taxes. In other words, don't be penny wise and pound foolish.

What are you doing to pay down your debt during these troubling financial times?

Deborah Owens is author of Nickel and Dime Your Way To Wealth. Read an excerpt on her Web site at deborahowens.com