401(k) Withdrawal Tax Calculator

Withdrawals from a traditional 401(k) are taxed as ordinary income at your federal bracket rate, from 10% to 37%, plus any state income tax. Because the withdrawal stacks on top of your other income, a large withdrawal can push part of it into a higher bracket. If you are under 59½, add a 10% additional tax unless an exception applies.

It is a 10% additional tax on the taxable amount you withdraw before age 59½. It is reported on Form 5329 and is owed on top of regular income tax. A $20,000 early withdrawal costs $2,000 in penalty alone, before income tax.

Common exceptions for 401(k) plans include separation from service in or after the year you turn 55 (the rule of 55), total and permanent disability, death, substantially equal periodic payments (SEPP), payments to an alternate payee under a QDRO, unreimbursed medical expenses above 7.5% of AGI, up to $5,000 per child for a birth or adoption, one emergency personal expense distribution of up to $1,000 per year, terminal illness, distributions to domestic abuse victims, qualified disaster distributions, and IRS levies. You still owe regular income tax.

If you leave your job (quit, are laid off, or retire) in or after the calendar year you turn 55, withdrawals from that employer's 401(k) are not subject to the 10% penalty. The age is 50 for qualified public safety employees in government plans. It only applies to the plan of the employer you left, not to IRAs or old 401(k)s from earlier jobs.

Federal law requires plans to withhold 20% from eligible rollover distributions paid directly to you. That 20% is a prepayment toward your tax, not the final amount. If your actual federal tax plus any penalty is more than 20%, you owe the difference when you file. If it is less, you get a refund. A direct rollover to an IRA or another plan avoids the withholding.

Qualified Roth 401(k) distributions are completely tax-free. To be qualified, the account must be at least 5 years old and you must be 59½ or older, disabled, or deceased. A non-qualified withdrawal is split between your contributions (tax-free) and earnings, and the earnings portion is taxable and may owe the 10% penalty. This calculator assumes a traditional, pre-tax 401(k).

Yes. A hardship withdrawal lets you access the money while still employed, but it is still taxable income and still owes the 10% penalty if you are under 59½, unless a separate exception (such as medical expenses above 7.5% of AGI) applies. Hardship distributions cannot be rolled over, so the 20% mandatory withholding does not apply; plans generally withhold 10% unless you opt out.

Often, if your plan allows loans. A loan of up to the lesser of $50,000 or 50% of your vested balance is not taxed or penalized as long as you repay it on schedule, usually within 5 years. The risk: if you leave your job with a balance outstanding, the unpaid amount can become a taxable distribution, plus the penalty if you are under 59½, unless you roll it over by your tax filing deadline.