How this calculator works
Withdrawals are taxed as ordinary income at your federal bracket and state rate, and before age 59½ a 10% penalty usually applies. What's left is the cash you keep. The calculator also shows what the full amount could grow to if left invested until retirement.
Worked example
With the example values below: Cash you keep, $12,600 (63% of the withdrawal). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Withdrawal amount | $20,000 |
| Federal tax bracket | 22% |
| State income tax | 5% |
| Under age 59½? | Yes, 10% penalty applies |
| Years until retirement | 30 yrs |
| Expected return | 7% |
The true cost of an early withdrawal
Withdrawals from a traditional 401(k) before age 59½ are taxed as ordinary income and usually hit with a 10% additional tax. In the 22% federal bracket with a 5% state tax, a $20,000 withdrawal leaves about $12,600 after the penalty and taxes.
The bigger cost is lost growth. That same $20,000 left invested at 7% for 25 years would grow to about $109,000. The calculator shows both numbers.
Exceptions to the 10% penalty
These avoid the 10% penalty but not income tax. Plans aren't required to offer every option, so check your plan's rules.
- Leaving your employer in or after the year you turn 55 (50 for some public safety workers), for that employer's plan.
- Total and permanent disability, or terminal illness.
- Substantially equal periodic payments under rule 72(t).
- Up to $5,000 per child for a birth or adoption.
- One emergency withdrawal of up to $1,000 a year.
- Up to $10,000 (indexed) for victims of domestic abuse.
- Medical expenses above 7.5% of adjusted gross income.
- Qualified disaster distributions.
Alternatives to withdrawing
A 401(k) loan lets you borrow up to 50% of your vested balance, up to $50,000, and repay yourself with interest, with no tax or penalty if you repay on time. If you leave your job, the balance may be due quickly. Hardship withdrawals avoid the need to repay but are still taxed and usually penalized.
Before tapping retirement savings, consider a personal loan, a payment plan, or your emergency fund.
Withholding and taxes
Plans withhold 20% for federal tax on most cash distributions, which may be less than you owe once the 10% penalty and state tax are added. Set aside the difference. If you change jobs, roll the balance directly to an IRA or your new plan to avoid taxes and penalties.
Frequently asked questions
How much tax will I pay on a 401(k) early withdrawal?
Your federal income tax rate plus state tax plus a 10% penalty, unless an exception applies. In the 22% bracket with 5% state tax, that's about 37% of the withdrawal.
When can I withdraw from my 401(k) without penalty?
At 59½, or from 55 if you leave the employer sponsoring the plan in or after the year you turn 55. Other exceptions include disability, 72(t) payments and some emergency and family situations.
Is a 401(k) loan better than a withdrawal?
Usually, because there's no tax or penalty if you repay on schedule, and the interest goes back to your account. The risks are lost growth and repayment being due if you leave your job.
How much is withheld from a 401(k) withdrawal?
Typically 20% for federal income tax on cash distributions. That may not cover the full tax and 10% penalty, so you could owe more when you file.
Can I withdraw from my 401(k) for a hardship?
Many plans allow hardship withdrawals for immediate, heavy financial needs such as medical bills, preventing eviction or funeral costs. They're taxed and usually subject to the 10% penalty, and can't be repaid to the plan.
Grow what this calculator projects.
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Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.