401(k) Withdrawal Calculator (2026): Tax and Penalty

How the tax on a 401(k) withdrawal is calculated

There are up to three charges. The calculator works each one out on its own.

Federal income tax. The withdrawal is stacked on top of your other income. The calculator works out your 2026 federal income tax twice, with the withdrawal and without it, and takes the difference.
Income tax on withdrawal = tax on (other income + withdrawal) − tax on other income
Both sums use the 2026 brackets and the standard deduction ($16,100 single, $32,200 joint, $24,150 head of household).
The 10% additional tax. If you are under 59½ and no exception applies, add 10% of the taxable amount.
Additional tax = withdrawal × 10%
State income tax. If you enter a rate, the calculator charges that percentage on the whole withdrawal.

Stacking matters. A large withdrawal can push part of your income into a higher bracket, so the rate on the withdrawal is often higher than the rate on your wages. That is also why two smaller withdrawals in different tax years can cost less income tax than one large one.

The result is an estimate. It treats your other income as ordinary income such as wages, uses the standard deduction, and knows nothing else about your tax return. Your real bill is worked out on Form 1040.

Worked examples

Age 40, single, $20,000 withdrawal

Other income of $60,000, no state income tax, and no exception to the 10% tax.

Withdrawal$20,000
Federal income tax without the withdrawal$5,020
Federal income tax with the withdrawal$8,770
Federal income tax caused by the withdrawal$3,750
10% additional tax$2,000
State income tax$0
Total tax$5,750
Withheld by the plan at 20%$4,000
You keep after tax$14,250

Age 62, married filing jointly, $40,000 withdrawal

Other household income of $90,000 and a 4% state income tax. Past 59½, so there is no 10% tax.

Withdrawal$40,000
Federal income tax without the withdrawal$6,440
Federal income tax with the withdrawal$11,240
Federal income tax caused by the withdrawal$4,800
10% additional tax$0
State income tax$1,600
Total tax$6,400
Withheld by the plan at 20%$8,000
You keep after tax$33,600

Age 45, a low-income year, $30,000 withdrawal

Single with only $15,000 of other income this year and a 5% state income tax. The income tax is low, but the 10% tax applies in full.

Withdrawal$30,000
Federal income tax without the withdrawal$0
Federal income tax with the withdrawal$3,220
Federal income tax caused by the withdrawal$3,220
10% additional tax$3,000
State income tax$1,500
Total tax$7,720
Withheld by the plan at 20%$6,000
You keep after tax$22,280

Tax on an early withdrawal by size

Single filer under 59½ with $60,000 of other income, standard deduction, no state income tax, no exception. Tax year 2026.
Withdrawal	Federal income tax	10% additional tax	Total tax	You keep	Share lost to tax
$5,000	$600	$500	$1,100	$3,900	22%
$10,000	$1,550	$1,000	$2,550	$7,450	25.5%
$20,000	$3,750	$2,000	$5,750	$14,250	28.7%
$30,000	$5,950	$3,000	$8,950	$21,050	29.8%
$50,000	$10,350	$5,000	$15,350	$34,650	30.7%
$75,000	$16,114	$7,500	$23,614	$51,386	31.5%
$100,000	$22,114	$10,000	$32,114	$67,886	32.1%

The share lost to tax climbs with the size of the withdrawal, because more of it lands in higher brackets. The 10% line stays a flat tenth at every size.

IRS exceptions to the 10% additional tax

These are the exceptions the IRS lists for workplace plans such as a 401(k). If one covers your whole withdrawal, choose "Yes" in the calculator. An exception removes the 10% tax only. Ordinary income tax is still due.

Age. You have reached 59½.
Separation from service. You left the employer during or after the year you reached age 55 (age 50 for certain public safety employees). People call this the rule of 55. It covers that employer's plan, not IRAs.
Death or disability. Paid after the participant's death, or because of total and permanent disability.
Equal payments. A series of substantially equal periodic payments. For a workplace plan they must start after you leave the employer.
Medical costs. Unreimbursed medical expenses above 7.5% of your adjusted gross income.
Birth or adoption. Up to $5,000 per child for qualified birth or adoption expenses.
Emergency personal expense. One distribution per calendar year for a personal or family emergency, up to the lesser of $1,000 or your vested balance over $1,000.
Domestic abuse victim. Up to the lesser of 50% of the account or a dollar cap that rises with inflation. The cap is $10,500 for 2026.
Disaster recovery. Up to $22,000 for people with an economic loss from a federally declared disaster.
Terminal illness. Paid after a physician certifies that the employee is terminally ill.
Divorce order. Paid to an alternate payee under a qualified domestic relations order.
Military. Certain distributions to qualified reservists called to active duty.
IRS levy. Paid because of an IRS levy on the plan.
Rollovers. Eligible distributions put into another retirement plan or IRA within 60 days, and in-plan Roth rollovers.
Plan corrections and special accounts. Corrective distributions of excess contributions, permissive withdrawals from plans with automatic enrollment, dividends passed through from an employee stock ownership plan, and distributions from a pension-linked emergency savings account.

Three exceptions people often expect do not apply to 401(k) plans. Buying a first home, paying for higher education, and paying health insurance premiums while unemployed are exceptions for IRAs only. Several exceptions have dollar limits, so a large withdrawal may be only partly covered. In that case, the 10% tax is 10% of the part that is not covered. The income tax line does not change.

The 20% withholding is not the final tax

When a 401(k) pays you a taxable distribution that you could have rolled over, the plan must withhold 20% for federal income tax, even if you plan to roll the money over later. On $20,000 you receive $16,000 and $4,000 goes to the IRS in your name.

That $4,000 is a credit against your tax for the year. If your income tax on the withdrawal plus the 10% additional tax comes to more than 20%, you owe the rest when you file. If it comes to less, the extra comes back. The calculator shows this as its own line. A direct rollover to another plan or IRA has nothing withheld.

The 20% rule only covers payments that could have been rolled over. Hardship withdrawals and required minimum distributions cannot be rolled over, and a hardship withdrawal cannot be paid back into the plan. For those payments the default federal withholding is 10%, and you can ask the plan for a different rate on Form W-4R. The calculator's withholding lines assume 20%, so read them as a guide if your payment is one of these. The tax lines are not affected.

What the result leaves out

Roth 401(k) money and after-tax contributions. The calculator treats the whole withdrawal as taxable.
Credits and other deductions. It uses the basic standard deduction only. It leaves out the extra standard deduction for people aged 65 or older or blind, itemized deductions, tax credits and any other deductions you qualify for.
Knock-on effects. A higher income for the year can change other parts of your tax return, such as credits that shrink as income rises or how much of a Social Security benefit is taxed. Those are not modeled.
Real state tax rules. States set their own brackets and rules for retirement income. A flat percentage is a rough stand-in, so check with your state tax agency.
Your plan's rules. A plan generally cannot pay out your deferrals until you leave the job, reach 59½, become disabled or qualify for hardship.
Lost growth. Money taken out stops growing for retirement.
Plan loans. Some plans let you borrow up to half of your vested balance, to a maximum of $50,000, generally repaid within 5 years. Loans follow different rules and are not covered here.

Common mistakes

Treating the 20% withheld as the tax. It is a deposit. The return settles the bill.
Forgetting the 10% is on top. It is added to income tax, and it applies even when your income tax is zero.
Using your current bracket for the whole withdrawal. Part of a large withdrawal can be taxed at a higher rate.
Assuming hardship means no penalty. A hardship withdrawal still needs to fit an exception.
Applying the rule of 55 to an IRA or an old employer's plan. It covers the plan of the employer you left in or after the year you reached 55.

Questions people ask

How much tax do I pay on a 401(k) withdrawal?

A withdrawal from a traditional 401(k) is added to your income for the year and taxed at your ordinary federal rates, plus state income tax where it applies. If you are under 59½ and no exception applies, there is also a 10% additional tax on the taxable amount.

What is the penalty for an early 401(k) withdrawal?

The IRS charges an additional tax of 10% of the taxable part of a distribution taken before age 59½, unless an exception applies. It is on top of ordinary income tax, not in place of it.

Is the 20% withholding all the tax I owe?

No. The 20% is a prepayment that the plan sends to the IRS. Your real tax is worked out on your return. You may owe more, especially if the 10% additional tax applies, or get some back. No state tax is included in the 20%.

What is the rule of 55?

It is the common name for an IRS exception. The 10% additional tax does not apply to a distribution from a workplace plan made after you separate from service with that employer during or after the year you reach age 55. It does not apply to IRAs.

Does a hardship withdrawal avoid the 10% tax?

Not by itself. Hardship is a reason a plan may let you take money out while still employed. The IRS says hardship distributions are subject to income tax and may also be subject to the 10% additional tax, so you still need one of the listed exceptions to avoid it.

How can I move 401(k) money without paying tax?

A direct rollover, where the plan sends pre-tax money straight to another employer plan or a traditional IRA, has no tax withheld and is not taxed. If the money is paid to you, you have 60 days to roll it over, and you must replace the 20% withheld from other funds to roll over the full amount. Moving pre-tax money into a Roth account is different: that amount is taxed as income.

Are Roth 401(k) withdrawals taxed the same way?

No. Qualified distributions from a designated Roth account are tax-free. This calculator is for traditional, pre-tax 401(k) money, where the whole withdrawal is normally taxable.

How do I report a 401(k) withdrawal?

The plan sends you Form 1099-R showing the distribution and any tax withheld. The 10% additional tax is reported on Schedule 2 of Form 1040, and Form 5329 is used to claim an exception that the 1099-R does not show.

Sources

Figures last checked against these sources on October 10, 2026. This page gives general information and estimates, not tax, legal or financial advice.