401(k) Early Withdrawal Calculator
401(k) early payout cost with penalty, tax, withholding, and exceptions.
What it does
Cashing a 401(k) early stacks two federal costs: ordinary income tax plus a 10% penalty on the taxable slice before 59.5. A $10,000 withdrawal at 22% costs $3,200 with $2,000 withheld at payout.
The tool above takes amount with age, rate, and exception. It returns total federal cost with penalty and the cash now versus balance due split.
The default 45-year-old with no exception pays $3,200 total: $8,000 now, $1,200 due. At 60 the same withdrawal costs $2,200 with no penalty.
Rules follow IRS distribution guides with Topics 558 and 5329 tables behind them. All three pin the 10%, 20%, and 59.5 figures used here.
How to use
- Enter the distribution amount.
- Enter your age.
- Enter the marginal tax rate.
- Pick an exception if any.
- Read total federal cost first.
- Read cash now and balance due.
Formula
- amount
- Gross distribution, pre-tax assumed.
- rate
- Federal marginal percent.
- exempt
- 59.5+ or listed exception.
- 20%
- Mandatory payout withholding.
Penalty runs on the taxable slice only; after-tax basis and completed rollovers sit outside. SEPP changes trigger recapture and SIMPLE first-two-year money runs 25%. State taxes add on top of federal here.
Worked example
Example: $10,000 at age 45
Defaults: $10,000 at 45, 22% bracket, no exception.
- Distribution: $10,000 pre-tax at age 45.
- Income tax: 10,000 x 22% = $2,200.
- Penalty: 10,000 x 10% = $1,000, no exception.
- Federal cost: 2,200 + 1,000 = $3,200.
- Withholding: 10,000 x 20% = $2,000.
- Cash now: 10,000 - 2,000 = $8,000.
- Balance due: 3,200 - 2,000 = $1,200.
- Tool shows $3,200.00, $1,000.00 penalty, $8,000.00 now, $1,200.00 due.
Reference table
| Rule | Figure | Note |
|---|---|---|
| Penalty rate | 10% | Of taxable part |
| Penalty age | 59.5 | Before this |
| Separation age | 55 | Qualified plans |
| Withholding | 20% | Paid to you |
| Rollover window | 60 days | Add funds to complete |
Limits
- Federal only; states add more.
- Pre-tax assumed; Roth orders differ.
- SIMPLE early years run 25%.
- Advice needs a tax pro.
Common mistakes
- Forgetting the 20% withholding gap.
- Assuming exceptions are automatic.
- Rolling hardship money over.
- Breaking SEPP schedules.
- Missing the 60-day window.
Try it yourself
Quick checks. Answers sit tucked under each question.
$10,000 at 60, 22%?
Tax $2,200, penalty $0: $2,200 total, $8,000 now, $200 due.
$10,000 at 57, separated at 55?
Separation at 55+ exempts: penalty $0.00.
Full $10,000 direct rollover?
Direct rollover: taxable $0, penalty $0, withholding $0.
Questions
What does an early withdrawal cost?
10% of the taxable part before 59.5 plus ordinary income tax. Roth basis and rollovers escape both.
What is withheld at payout?
20% of taxable eligible rollovers paid to you. Direct rollovers withhold $0; add funds within 60 days to complete.
Which exceptions skip the penalty?
Separation at 55+, disability, SEPP series, death, QDRO, levy, and medical over 7.5% of AGI.
How does the medical exception work?
Only the amount over 7.5% of AGI escapes on that ground. The rest still penalizes.
What about designated Roth money?
Yes: 5-year plus 59.5, disability, or death makes earnings tax free. Early nonqualified earnings penalize pro rata.
Do all payouts roll over?
No. Hardship, loans-as-distributions, and RMDs each carry their own rollover limits.