401(k) Withdrawal Calculator
See what you actually keep when you withdraw from a traditional 401(k): federal and state income tax, the 10% early-withdrawal penalty before age 59 1/2, the lost growth from taking money out early and the balance left. Example: withdrawing $10,000 at age 40 in the 22% federal and 5% state brackets nets about $6,300.
Show steps
How to use the 401(k) Withdrawal Calculator
- Enter your 401(k) balance, the amount you want to withdraw and your age.
- Pick your federal marginal tax rate and enter your state rate.
- Press Calculate to see taxes, any early penalty, what you keep and the lost growth.
Formula and method
Net = withdrawal – federal tax – state tax – penalty. Federal and state tax = withdrawal x marginal rate. Penalty = 10% of the withdrawal if you are under 59 1/2 and no exception applies. Lost growth = withdrawal x (1 + return)^(years to 65).
Worked example: $10,000 at age 40
| Item | Amount |
|---|---|
| Gross withdrawal | $10,000 |
| Federal tax 22% | -$2,200 |
| State tax 5% | -$500 |
| Early penalty 10% | -$1,000 |
| Net received | $6,300 |
| Value at 65 if left invested at 7% | $54,274 |
When the 10% penalty does not apply
| Situation | Notes |
|---|---|
| Age 59 1/2 or older | No penalty |
| Separation from service in or after the year you turn 55 | Applies to the 401(k) of that employer |
| Disability or death | Exception |
| Substantially equal periodic payments (72(t)) | Exception with strict rules |
| Birth or adoption, up to $5,000 | Exception |
Alternatives to a withdrawal
A 401(k) loan, a hardship withdrawal review, a home equity line or a personal loan may cost less than permanent tax and penalty. A loan must usually be repaid within five years.
Required minimum distributions
Traditional 401(k) owners generally must start taking required minimum distributions at age 73 (75 for those born in 1960 or later). Missing one triggers an excise tax.
Frequently asked questions
How much tax will I pay on a 401(k) withdrawal?
Withdrawals are taxed as ordinary income at your marginal rate, plus state tax.
What is the early-withdrawal penalty?
10% of the amount withdrawn before age 59 1/2, unless an exception applies.
Why is 20% withheld?
Plans must withhold 20% federal tax on eligible distributions paid to you; you settle the actual tax when filing.
Can I avoid the penalty?
Some exceptions apply, such as disability, 72(t) payments, or leaving your employer at 55 or later.
Is a Roth 401(k) different?
Qualified Roth withdrawals are tax-free; the rules differ for earnings and contributions.
What is the true cost of an early withdrawal?
The tax, the penalty and the growth you give up.
Sources
- IRS: Retirement topics, 401(k) and profit-sharing plan distributions
- IRS: Tax on early distributions
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