A 401(k) early withdrawal calculator estimates what you keep after cashing out before age 59½. Most people lose three slices: federal income tax at their top bracket, a 10% IRS additional tax unless an exception applies, and state income tax. The plan also withholds 20% at payout, which is a prepayment and rarely the final bill.
This page and calculator are general information, not tax, legal or financial advice. Tax results depend on facts the calculator can't see. Talk to your plan administrator and a qualified tax professional before taking money out of a retirement account.
How to use this calculator
- Enter the gross amount you plan to withdraw, before any withholding.
- Enter your age on the payout date and your filing status.
- Enter your other income for the year, such as wages, before the standard deduction.
- Choose the account: 401(k) or 403(b), governmental 457(b), or traditional IRA (for an IRA withdrawal calculator result).
- Enter your state's income tax rate, or 0 if your state has none.
- Say whether an IRS exception applies, such as the rule of 55 or disability.
- Read what you keep, the 20% withheld, the check you receive and whether you'll owe or get a refund at tax time.
How the 401(k) withdrawal tax is calculated
- Federal income tax = tax on (other income + withdrawal − standard deduction) − tax on (other income − standard deduction), using the 2026 rate tables in IRS Rev. Proc. 2025-32. This is the extra tax the withdrawal causes, so it is charged at your top bracket and any higher brackets it reaches.
- 10% additional tax = 10% × withdrawal, if you are under 59½, no exception applies and the money is not from a governmental 457(b) (IRS Topic 558).
- State tax = withdrawal × the state rate you enter.
- Withheld at payout = 20% for an employer plan cash-out (IRS Topic 413) or 10% for an IRA (the default for nonperiodic payments in IRS Publication 575).
- You keep = withdrawal − federal tax − penalty − state tax.
2026 standard deductions: $16,100 single, $32,200 married filing jointly, $24,150 head of household (IRS 2026 inflation adjustments). The calculator assumes all of the withdrawal is taxable, which is true unless you made after-tax contributions.
Worked examples
$20,000 cash-out at 35, single, $60,000 salary
The plan withholds $4,000 and sends a check for $16,000. At tax time the withdrawal adds $3,750 of federal tax (mostly at 22%) and a $2,000 penalty. With 5% state tax ($1,000), you keep about $13,250, losing 33.8%. Because withholding was $4,000, about $1,750 more federal tax is due when you file.
$50,000 at 42, married filing jointly, $90,000 other income
Federal tax on the withdrawal is about $6,700 and the penalty $5,000. With no state tax you keep about $38,300. The 20% withheld ($10,000) leaves $1,700 still owed.
Rule of 55: left the job at 56
Same $20,000 as the first example, but you separated from service after turning 55, so there is no penalty. You keep about $15,250, which is $2,000 more. The 20% is still withheld because the payout is an eligible rollover distribution.
Small withdrawal with no other income
A single filer with no other income who takes $10,000 has all of it covered by the standard deduction. Federal tax is only $0, but the $1,000 penalty applies to the full amount; you keep $9,000.
401(k) cash-out: what you keep by amount and income
Single filer, age 35, 401(k), no exception, no state tax. Other income across the top.
| Withdrawal | $0 income | $40,000 income | $80,000 income | $150,000 income |
|---|---|---|---|---|
| $5,000 | $4,500 | $3,900 | $3,400 | $3,300 |
| $10,000 | $9,000 | $7,800 | $6,800 | $6,600 |
| $25,000 | $21,610 | $19,500 | $17,000 | $16,500 |
| $50,000 | $41,180 | $36,650 | $33,836 | $33,000 |
| $100,000 | $76,830 | $70,286 | $66,836 | $63,430 |
2026 federal tax brackets used
The rate applies to taxable income above each figure (IRS Rev. Proc. 2025-32).
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | over $0 | over $0 | over $0 |
| 12% | over $12,400 | over $24,800 | over $17,700 |
| 22% | over $50,400 | over $100,800 | over $67,450 |
| 24% | over $105,700 | over $211,400 | over $105,700 |
| 32% | over $201,775 | over $403,550 | over $201,750 |
| 35% | over $256,225 | over $512,450 | over $256,200 |
| 37% | over $640,600 | over $768,700 | over $640,600 |
A single filer with $50,400 of taxable income owes $5,800.
Exceptions to the 10% early withdrawal penalty
These come from the IRS exceptions table for qualified plans such as 401(k) and 403(b). Income tax still applies to all of them. Your plan must also allow the distribution, and it reports the reason on Form 1099-R; if it uses the wrong code you claim the exception on Form 5329.
- Rule of 55: you leave that employer during or after the year you turn 55 (age 50 for qualified public safety employees in a governmental plan).
- Disability, death or terminal illness certified by a physician.
- Substantially equal periodic payments over your life expectancy.
- Medical expenses above 7.5% of adjusted gross income, up to the unreimbursed amount.
- Birth or adoption: up to $5,000 per child.
- Emergency personal expense: one distribution a year, up to $1,000.
- Domestic abuse victim distributions, federally declared disasters (up to $22,000), qualified reservists called to active duty, a QDRO payment to an ex-spouse, and an IRS levy.
Hardship withdrawals are not on the list. IRS guidance says a hardship distribution is subject to income tax and may be subject to the 10% additional tax, and it can't be repaid or rolled over. Because it isn't an eligible rollover distribution, the 20% mandatory rule doesn't apply; Publication 575 sets 10% as the withholding for that kind of nonperiodic payment, so pick the IRA option above to see that withholding.
Common mistakes
- Treating the 20% as the whole cost. In the 22% bracket, tax plus the 10% penalty is 32% of the withdrawal federally, before state tax.
- Forgetting the withdrawal raises your bracket. A large cash-out on top of a salary can push part of it into the 24% bracket or higher. Splitting it across two tax years can lower the rate.
- Assuming the rule of 55 covers an IRA. Rolling the money to an IRA first removes that exception.
- Leaving the job the year before you turn 55. The rule looks at the year you separate, not the year you withdraw.
Alternatives to cashing out
Before you withdraw, ask your plan whether it offers loans. Per the IRS, you can generally borrow up to 50% of your vested balance or $50,000, whichever is less, repaid within five years; a loan isn't taxed unless it breaks those rules or goes into default. A direct rollover keeps the money tax-deferred and avoids withholding entirely. To see what the money could be worth if left alone, try the 401(k) calculator; federal employees can use the TSP calculator, and retirees can check how long retirement savings will last.
Frequently asked questions
How much tax will I pay on a 401(k) early withdrawal?
Usually your top federal income tax rate on the amount, plus a 10% additional tax if you are under 59½ and no exception applies, plus any state income tax. For a single filer earning $60,000 who withdraws $20,000 at 35 with a 5% state tax, this calculator estimates $3,750 federal tax, $2,000 penalty and $1,000 state tax, leaving about $13,250.
What is the penalty for early 401(k) withdrawal?
The IRS charges a 10% additional tax on the taxable part of a distribution taken before age 59½, on top of regular income tax, unless an exception applies (IRS Topic 558). Distributions from a SIMPLE IRA in the first 2 years of participation are charged 25% instead.
Why was 20% withheld from my 401(k) cash-out?
A lump-sum payout from an employer plan that could have been rolled over is an eligible rollover distribution, and the plan must withhold 20% for federal income tax (IRS Topic 413). The 20% is a prepayment, not the final bill: your actual tax and any 10% penalty are settled on your tax return, so you may owe more or get some back.
Is 20% withholding enough to cover the tax and penalty?
Often not. The 10% penalty alone uses half of it. In the example of $20,000 at a 22% top bracket, federal tax plus penalty is $5,750 against $4,000 withheld, so about $1,750 more is due at tax time.
What is the rule of 55?
If you leave your job (quit, are laid off or retire) during or after the calendar year you turn 55, distributions from that employer's plan are not charged the 10% additional tax. It does not apply to IRAs. Qualified public safety employees in a governmental plan can use age 50 instead.
Do 457(b) withdrawals have an early withdrawal penalty?
No, with one catch. Distributions from a governmental 457(b) plan are not subject to the 10% additional tax, except for money that was rolled in from another type of plan or an IRA. Income tax still applies. With the same inputs as the first example, a 457(b) payout keeps about $15,250 instead of $13,250.
What are the exceptions to the 10% early withdrawal penalty?
For 401(k)-type plans the IRS lists the rule of 55 (50 for public safety), disability, death, terminal illness, substantially equal periodic payments, medical expenses above 7.5% of AGI, up to $5,000 per child for birth or adoption, one $1,000 emergency expense a year, domestic abuse, federally declared disasters (up to $22,000), qualified reservists, QDROs, IRS levies and corrective distributions.
Is an IRA withdrawal taxed the same way?
The 10% additional tax and income tax work the same way for a traditional IRA, but some exceptions differ. The rule of 55 does not apply to IRAs, while first-time home purchases (up to $10,000), higher education expenses and health insurance premiums while unemployed are IRA-only exceptions. IRAs are not subject to the 20% mandatory withholding; the calculator uses the 10% default for nonperiodic payments.
How do I avoid the 20% withholding?
Ask the plan for a direct rollover to an IRA or another employer plan. IRS Topic 413 says mandatory withholding does not apply in a direct rollover. If you take the cash instead, you have 60 days to roll it over, but you would need to replace the 20% from other money to roll over the full amount.
Is this calculator tax advice?
No. It is a simplified estimate using 2026 federal brackets and the standard deduction. It ignores credits, itemized deductions, after-tax basis, local taxes and the timing of your other income. Check your situation with the plan administrator and a qualified tax professional before you withdraw.
Sources & method
- IRS Topic 558 — Additional tax on early distributions from retirement plans
- IRS — Retirement topics: exceptions to tax on early distributions
- IRS — Retirement topics: tax on early distributions (457(b), SIMPLE IRA 25%)
- IRS Topic 413 — Rollovers from retirement plans (20% mandatory withholding)
- IRS — Retirement topics: hardship distributions
- IRS — Retirement plans FAQs regarding loans (50% of vested balance or $50,000 cap, 5-year repayment)
- IRS Publication 575 — Pension and annuity income (withholding, rule of 55)
- IRS — Tax inflation adjustments for tax year 2026 (standard deduction, brackets)
- IRS Rev. Proc. 2025-32 — 2026 tax rate tables
Results are estimates for general information. Found an error? It helps everyone — see our methodology.