401k Early Withdrawal Penalty Calculator
Thinking of taking money out of your 401k early? See the taxes and the 10% penalty, what you would actually keep, and what you would give up for retirement.
What we noticed
Year by year
How this calculator works
If you take money from a 401k before age 59½, the amount is added to your income and taxed, and you usually pay an extra 10% penalty on top. Your plan also has to hold back 20% for federal tax when it pays you directly.
Some situations are exempt from the 10% penalty, such as disability, or leaving your job in or after the year you turn 55. Choose the one that fits in the form. The income tax still applies.
We also show what the money could have grown to by retirement if you left it alone, because that is often the biggest cost.
Common exceptions to the 10% penalty
| You are 59½ or older | No penalty |
|---|---|
| You left your job in or after the year you turned 55 | No penalty on that employer's plan |
| Total and permanent disability | No penalty |
| Birth or adoption of a child | Up to $5,000 per child |
| Personal or family emergency expense | Up to $1,000 per year |
| A hardship withdrawal on its own | Does not remove the penalty |
Frequently asked questions
Is there a penalty for withdrawing from a 401k early?
Usually yes: 10% of the amount, plus income tax, if you are under 59½. Some exceptions apply, such as disability or leaving your job in or after the year you turn 55.
How much tax will I pay on a 401k withdrawal?
The amount is added to your income for the year and taxed at your rates. Because it adds to your income, it can push part of it into a higher bracket than you expect.
What is the 20% withholding?
When a 401k pays you directly, the plan must hold back 20% for federal tax. That is a prepayment, not the final bill. You settle the actual tax when you file.
Can I avoid the penalty with a loan or a rollover?
A 401k loan is not taxed or penalised if you repay it on time. A rollover moves money to another retirement account without tax or penalty if done correctly. Both have their own rules.
Is this tax advice?
No. It is an estimate. Your actual tax depends on your whole income and situation, so check with a tax professional before you decide.