401(k) Withdrawal Calculator: Tax & Early Withdrawal Penalty

A traditional 401(k) withdrawal is taxed as ordinary income at your federal bracket rate, plus state income tax in most states. If you are under 59½ and no exception applies, you also owe a 10% additional tax on the taxable amount. The plan withholds a flat 20% on a regular cash payout, which is often less than the real bill. For a single filer with $50,000 of other income, a $25,000 early withdrawal in 2026 costs $3,850 of federal income tax plus a $2,500 penalty, so you keep $18,650 before state tax.

Which calculator do you need? This page covers cash taken out of a 401(k), 403(b) or similar employer plan. For money in an IRA, use the IRA withdrawal tax calculator: the exceptions and withholding differ. For required withdrawals at 73 or later, use the RMD calculator. If you are moving the money rather than spending it, compare options in the 401(k) rollover calculator or read how to roll a 401(k) into a Roth IRA without a penalty.

The calculator is for informational purposes only. Its results are estimates based on the 2026 federal tax tables and the inputs you give it, not tax advice, and they are not guaranteed to match your return.

Tax on a $10,000, $25,000 or $50,000 401(k) withdrawal

The table shows a single filer with $50,000 of other income, no state income tax, and a regular cash withdrawal from a traditional 401(k) in 2026. "Under 59½" means no exception applies. The plan withholds 20% either way.

The arithmetic: $50,000 − $16,100 standard deduction = $33,900 of taxable income, which leaves $16,500 of room in the 12% bracket (it ends at $50,400 for single filers in 2026, per Rev. Proc. 2025-32). The first $16,500 of the withdrawal is taxed at 12% and the rest at 22%. So $50,000 costs $16,500 × 12% + $33,500 × 22% = $9,350, plus $5,000 of penalty. At 60 the federal income tax is the same, but the penalty disappears and the 20% withholding is more than the tax, so part of it comes back at filing.

Two patterns stand out. First, the bigger the withdrawal, the higher the effective cost, because more of it lands in the 22% bracket. Second, under 59½ the 20% withholding almost never covers tax plus penalty once you are in the 22% bracket, which is why so many people get a bill in April.

How the calculator works

1. Taxable part. Pre-tax 401(k) money is fully taxable. If the account also holds after-tax contributions, or if you are taking a nonqualified Roth 401(k) distribution, the tax-free part is figured pro rata: withdrawal × contributions ÷ account balance, the formula in IRS Publication 575 for distributions before the annuity starting date.
2. Federal income tax. The taxable part is stacked on your other income using the 2026 brackets and standard deduction ($16,100 single, $32,200 joint, $24,150 head of household), plus the age-65 add-on and the senior deduction when they apply. The tool figures the tax with and without the withdrawal and reports the difference, so a jump into a higher bracket is captured. It uses the same federal engine as the IRA withdrawal calculator.
3. 10% additional tax. Under 59½, 10% of the taxable part, minus whatever your exception covers. Full exceptions (age-55 separation, disability, SEPP and others) remove it entirely; capped exceptions (birth or adoption, emergency, domestic abuse, disaster, medical) remove it only up to their limit.
4. State tax. Taxable part × your state rate. With no rate entered, the tool uses the state's 2026 top marginal rate, which overstates the tax in states with graduated brackets for most incomes. In California it adds the state's 2.5% tax on early distributions.
5. Withholding. 20% of the taxable part of a regular payout, or 10% by default for a hardship distribution and other payouts that aren't rollover-eligible, or the higher rate you elect. The difference between that and the federal tax plus penalty is what you owe, or get back, when you file.
6. Net-target mode. Choose "How much to withdraw to net a target amount" and the tool solves for the gross withdrawal. At 45 with $50,000 of other income, netting $20,000 takes a withdrawal of about $26,985, because each extra dollar above $25,000 keeps only 68 cents after the 22% bracket and the 10%.

What each input means

Worked examples

$40,000 early withdrawal at 52

A single filer, 52, with $60,000 of other income takes $40,000 from a traditional 401(k). No exception applies. State tax is 5% (illustrative).

• Taxable income goes from $43,900 to $83,900
• Federal income tax: $6,500 × 12% + $33,500 × 22% = $8,150
• 10% additional tax: $4,000
• State tax: $40,000 × 5% = $2,000
• Kept after all taxes: $40,000 − $14,150 = $25,850, an effective cost of 35.4%
• The plan sends $32,000 after withholding $8,000, so $4,150 of federal tax and penalty is still due at filing, before the state's share

The rule of 55: $30,000 at 56 after leaving the job

A single filer left their employer at 55 and, now 56, takes $30,000 from that employer's 401(k). Other income is $40,000.

• Federal income tax: taxable income goes from $23,900 to $53,900, so $26,500 × 12% + $3,500 × 22% = $3,950
• 10% additional tax: $0 under the separation-from-service exception (it would have been $3,000)
• Withholding: 20% of $30,000 = $6,000, which is $2,050 more than the tax this withdrawal adds, so it comes back at filing (or reduces the tax due on other income)

$15,000 hardship withdrawal at 40

A single filer, 40, with $45,000 of other income takes a $15,000 hardship distribution.

• Federal income tax: all of it falls in the 12% bracket, $1,800
• 10% additional tax: $1,500 (hardship alone is not an exception)
• Withholding: hardship distributions aren't rollover-eligible, so the default is 10%: $1,500
• Still owed at filing: $3,300 − $1,500 = $1,800. Electing 25% withholding on Form W-4R would have covered it

Nonqualified Roth 401(k) withdrawal at 45

A Roth 401(k) holds $40,000, of which $30,000 is the participant's Roth contributions. They withdraw $20,000 at 45 with $50,000 of other income.

• Earnings share: ($40,000 − $30,000) ÷ $40,000 = 25%, so $5,000 is taxable and $15,000 is tax-free
• Federal income tax: $5,000 × 12% = $600; 10% additional tax: $500
• Withholding: 20% of the taxable $5,000 = $1,000

A Roth IRA would treat the same withdrawal as all contributions, with no tax at all, because Roth IRAs pay out contributions first. A Roth 401(k) does not: every nonqualified withdrawal carries its share of earnings.

The 10% early withdrawal penalty and its exceptions

IRC section 72(t) adds 10% to your tax on the part of an early distribution included in gross income. It doesn't apply to the tax-free part, such as Roth contributions or after-tax money, or to amounts rolled over. The exceptions below are the ones that work for a 401(k) and other qualified plans, from the IRS page Retirement topics: exceptions to tax on early distributions and Publication 575.

The $10,500 domestic abuse limit for 2026 (up from $10,300) is in IRS Notice 2025-67. The same notice keeps the 2026 limit for qualified long-term care distributions, a newer exception under section 72(t)(2)(N), at $2,600, for plans that offer it. Distributions from a pension-linked emergency savings account (PLESA), if your plan has one, are exempt under section 72(t)(2)(J). The IRS also lists permissive withdrawals from automatic-enrollment plans under section 414(w). Distributions from a governmental 457(b) plan don't owe the 10% at all, except for amounts rolled in from another type of plan or IRA.

IRA exceptions that don't work for a 401(k)

Three popular exceptions apply only to IRAs: up to $10,000 for a first home, qualified higher education expenses, and health insurance premiums while unemployed. Section 72(t)(2)(D), (E) and (F) limit them to "individual retirement plans." If you take 401(k) money for a house or tuition before 59½, you owe the 10%. Some people roll the money to an IRA first and then withdraw it; that can make those exceptions available, but it also loses the age-55 rule, which section 72(t)(3)(A) denies to IRAs. The IRA withdrawal tax rules guide covers the IRA side.

How the rule of 55 works

The age-55 exception has three conditions that trip people up:

• The year counts, not your birthday. Publication 575 requires separation from service in or after the calendar year you reach 55. Leaving in March of the year you turn 55 qualifies even if your birthday is in November.
• Leaving earlier doesn't work. If you leave at 49 and wait until 55 to withdraw, the exception doesn't apply. Publication 575 gives exactly this example.
• It covers only that employer's plan. Money in an old employer's 401(k) from a job you left at 45, or money rolled to an IRA, doesn't qualify. Keep the money in the plan of the job you left at 55 or later if you will need it before 59½.

Qualified public safety employees use 50 or 25 years of service under the plan, whichever comes first. This covers state and local police, firefighters, emergency medical workers and corrections officers in a governmental plan, private-sector firefighters, and several federal groups, including federal law enforcement officers, customs and border protection officers, federal firefighters and air traffic controllers. SECURE 2.0 added the 25-years-of-service test and the corrections officers.

Why the plan withholds 20% (and when it's 10%)

A cash payout from a 401(k) is usually an "eligible rollover distribution," and IRC section 3405(c) requires the plan to withhold 20% of it for federal income tax. The Form W-4R instructions are explicit: you can elect a higher rate, but not less than 20%, and not zero. The only way to avoid the 20% is a direct rollover to an IRA or another plan. Before paying you, the plan must give you a written notice explaining the rollover options and the withholding, as required by section 402(f).

Some payouts are not eligible rollover distributions, and for them the default is 10% under section 3405(b), which you can change to any rate from 0% to 100%:

• hardship distributions, which section 402(c)(4) excludes from rollover;
• qualified birth or adoption, emergency personal expense, domestic abuse victim, qualified disaster recovery and long-term care distributions, at any age;
• distributions from a pension-linked emergency savings account;
• required minimum distributions;
• substantially equal periodic payments over your life expectancy, which are periodic payments withheld under Form W-4P rules.

The calculator applies 20% to the rollover-eligible part and 10% (or your elected rate) to the rest. For a Roth 401(k), withholding applies only to the taxable earnings part, and a qualified Roth distribution has none.

Withholding is not the tax. In the $50,000 example above, withholding was $10,000 but tax plus penalty was $14,350. If too little is withheld, ask for a higher rate on Form W-4R or make an estimated payment. Publication 575 says you generally must pay estimated tax if you expect to owe $1,000 or more after withholding and credits, and your withholding falls short of the safe-harbor amounts. The tax withholding calculator can help you plan the rest of the year.

Changed your mind? You can still roll over a distribution paid to you within 60 days. To roll over the full amount, replace the 20% that was withheld with other money. Whatever you don't roll over is taxable, and penalized if you're under 59½, including the part withheld.

Roth 401(k) withdrawals

A distribution from a designated Roth account is tax-free when it is qualified. Under IRC section 402A(d), that requires both of the following:

1. The 5-taxable-year period has passed. It starts with the first tax year you made a Roth contribution to that plan. Publication 575's example: a first contribution for 2025 makes 2030 the first year a qualified distribution is possible. A direct rollover from an older plan's Roth account carries over that plan's earlier start year.
2. A triggering event: age 59½, death, or disability. Unlike a Roth IRA, there's no first-home trigger.

A nonqualified distribution is split pro rata between your contributions and earnings, as in the worked example above. The earnings part is ordinary income and, before 59½, subject to the 10% unless an exception applies. Amounts from an in-plan Roth rollover taken within five years can also owe the 10% on the converted amount. That recapture rule is in Publication 575, and the calculator doesn't model it.

If you plan to move Roth 401(k) money to a Roth IRA, the Roth conversion calculator and the rollover article linked above explain how the two accounts' clocks interact.

State tax on 401(k) withdrawals

Most states tax 401(k) withdrawals as ordinary income. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming don't tax them. The calculator starts from each state's 2026 top marginal rate, so enter your own bracket for an accurate figure. Three states have special rules:

• California adds its own 2.5% tax on the taxable part of an early distribution, reported on Form FTB 3805P, on top of its income tax (FTB: early distributions). The 2025 FTB 3805P instructions say California doesn't conform to every federal exception. Every 401(k) exception this calculator offers is on California's list, including the age-55 rule, birth or adoption, emergency, domestic abuse and disaster distributions. California's list doesn't include the federal phased-retirement annuity or automatic-enrollment permissive withdrawal exceptions. The calculator adds the 2.5% for California whenever the federal 10% applies, on the same amount, and whatever state rate you enter.

• Illinois lets you subtract distributions from qualified employer plans, including 401(k) plans and early distributions, that are in federal AGI (Illinois Publication 120). The calculator sets Illinois tax to $0.

• Pennsylvania doesn't tax retirement benefits paid after you retire from service having met the plan's age or years-of-service conditions. Before that, it taxes only the part above your contributions, because Pennsylvania already taxed your deferrals (PA Personal Income Tax Guide). Because that depends on your plan, the tool applies the 3.07% rate and asks you to enter 0% or a lower rate if either rule fits.

Several states exempt part or all of retirement income for older residents, and state withholding rules on plan payouts vary. Check your state revenue department before you rely on the state figure.

A 401(k) loan instead of a withdrawal

If your plan offers loans, borrowing avoids both the income tax and the 10%, as long as the loan stays within the limits of IRC section 72(p):

• Amount: the lesser of $50,000 or half your vested balance, or up to $10,000 even when that is more than half, if your plan allows it. Plans don't have to offer loans and may set lower limits (IRS: retirement plan FAQs regarding loans). The $50,000 is reduced if you had a higher loan balance during the past 12 months. With a $60,000 vested balance, the cap is $30,000.
• Term: repayment within 5 years, unless the loan buys your main home.
• Payments: substantially level, at least quarterly.

A loan that breaks these rules becomes a taxable "deemed distribution." If you leave the job, the plan may offset the unpaid balance against your account. A qualified plan loan offset from leaving the job can still be rolled over until your tax return's due date, including extensions, per Publication 575. The calculator doesn't model loans. If you enter your total vested balance, it shows the legal maximum alongside an early withdrawal, so you can compare.

Hardship withdrawals

A plan may allow a hardship distribution for an "immediate and heavy financial need," but it doesn't have to, and the employer decides what qualifies under the plan's terms (IRS: hardship distributions). Hardship money can't be rolled over or repaid to the plan. Being approved for hardship does not waive the 10%: a hardship withdrawal at 40 is taxed and penalized like any other early withdrawal, unless the reason is also a tax exception (medical expenses above 7.5% of AGI, for example). The difference is withholding. Because hardship money can't be rolled over, it gets 10% default withholding instead of 20%, which makes a balance due at filing more likely. See the $15,000 example above.

How a 401(k) withdrawal shows up on your tax return

The plan sends Form 1099-R. The code in box 7 tells the IRS how to treat it, per the Form 1099-R instructions:

• Code 1: early distribution, no known exception. If you do qualify for one, file Form 5329 with the exception number. Number 01 is separation from service at 55 (50 for public safety), and 05 is medical expenses.
• Code 2, 3 or 4: early distribution with an exception the plan knows about, disability, or death. No Form 5329 needed for the exception.
• Code 7: normal distribution, at 59½ or later.
• Code B: designated Roth account distribution.

If you owe only the 10% and box 7 correctly shows code 1, Publication 575 lets you skip Form 5329 and enter 10% of the taxable amount on Schedule 2. The withheld tax in box 4 counts as a payment on your Form 1040.

Ways to lower the cost of a 401(k) withdrawal

• Check for an exception first, especially the age-55 rule, and keep the paperwork: separation date, physician certification or medical receipts.
• Split the withdrawal across two tax years to keep more of it in a lower bracket. The federal tax bracket calculator shows how much room is left in yours.
• Take only what you need after tax. Use the net-target mode rather than guessing, and remember the state's share.
• Borrow instead, if your plan offers loans and you can repay on schedule.
• Roll over what you don't need now. A direct rollover of the rest avoids withholding and keeps it growing tax-deferred. The 401(k) rollover calculator shows what cashing out costs over the long run, and the real cost of cashing out a 401(k) after quitting walks through one case.