Introduction
When you take money out of your 401(k), you don't keep all of it. The IRS taxes it as income. Your state may tax it too. And if you are under age 59½, you may owe an extra 10% penalty.1 This 401(k) withdrawal tax calculator shows you what is left after all of that.
Just enter your withdrawal amount, your age, your other income, your filing status, and your state. The calculator uses the 2026 federal tax brackets and your state's tax rules to work out your federal tax, state tax, penalty, and net cash in hand. It also shows your effective tax rate and which tax bracket the money lands in.
You can compare two plans side by side, such as taking money now versus waiting until 59½. You can check a Traditional 401(k) against a Roth 401(k). You can see how much a move to a low-tax state would save. Every result comes with a step-by-step math breakdown, so you can see exactly how each number was found before you make your choice.
How to use our 401k Withdrawal Tax Calculator
Enter how much you plan to take out of your 401(k), your age, your income, and where you live. The calculator shows your federal tax, state tax, any 10% early withdrawal penalty, your total tax bill, and the net cash you keep.
401(k) Withdrawal Amount: Type the total dollar amount you want to pull out of your account this year.
Account Holder Age: Enter your age. Taking money out before age 59½ can add a 10% penalty.1
Account Type: Pick Traditional 401(k) or Roth 401(k). Traditional money is taxed when you withdraw it. Roth money may come out tax-free.
5-Year Rule (Roth only): Check this box if your first Roth contribution to this plan was made 5 or more tax years ago.4 The withdrawal is then qualified, and tax-free, when it is made at 59½ or older, after your death, or because you are disabled.4
Earnings Portion of Withdrawal (Roth only): Enter the percent of the withdrawal that is growth, not your own contributions. Only that part is taxed on a non-qualified Roth withdrawal.
Withdrawal Reason / Type: Choose why you are taking the money out. Some reasons, like disability, death, leaving your job in or after the year you turn 55, or SEPP payments that start after you leave your job, skip the 10% penalty.13
Federal Filing Status: Pick how you file your taxes, such as Single or Married Filing Jointly. This sets your tax brackets and standard deduction.
Spouse's Age: Shown when you file jointly. If your spouse is 65 or older, the calculator adds the extra federal deductions for their age.
Other Annual Income: Enter all your other taxable income for the year, like wages. Your withdrawal stacks on top of this, so it matters a lot.
State of Residence: Choose your state. States with no income tax are marked, and some states give retirement income breaks.
Your Social Security Benefits: Shown for Maryland and Maine. Enter your total benefits for the year, taxable or not, because these states reduce their pension break by that amount.
Custom State Tax Rate: Optional. Enter your own state rate as a percent if you want to override the built-in state rules.
Federal Withholding Percentage: Enter the percent your plan holds back for federal tax. Plans generally must withhold 20% from an eligible rollover distribution paid to you.6 Hardship withdrawals, RMDs and SEPP payments are not eligible rollover distributions, so that rule does not apply to them.6 The tool shows if the amount withheld covers what you owe.
Additional Tax Deductions or Adjustments: Optional. Add other write-offs, like HSA or student loan interest, to lower your taxable income.
Apply the 2026 Federal Standard Deduction: Keep this checked to use the standard deduction for your filing status. Uncheck it if you itemize.
Expected Annual Inflation Rate: Enter the yearly inflation rate you expect. This shows what your money will really be worth later.
Years Until You'll Spend This Money: Enter how many years the cash will sit before you use it. Put 0 if you will spend it now.
Compare Two Scenarios: Turn this on to test a second plan, like waiting until age 59½, next to your first one.
Scenario A Name: Name your main plan so it is easy to read in the comparison table and chart.
Scenario B Name and Inputs: Name your second plan, then set its own withdrawal amount, age, reason, account type, other income, state, and filing status. A Roth 401(k) in Scenario B uses the 5-year box and earnings share from Scenario A.
Click Calculate to see your results, bracket breakdown, and step-by-step math. Click Reset to start over.
401(k) Withdrawal Tax: What You Need to Know
A 401(k) is a retirement account you get through work. Money you put in a traditional 401(k) is not taxed right away. It is taxed later, when you take it out. So when you make a withdrawal, the IRS treats that money like a paycheck. It gets added to the rest of your income for the year and is taxed at your regular income tax rate.
The 10% Early Withdrawal Penalty
If you take money out before age 59½, you usually owe an extra 10% penalty on top of the income tax.1 This rule comes from Section 72(t) of the tax code.2 The penalty is why early withdrawals cost so much. A $50,000 withdrawal can lose a big chunk to federal tax, state tax, and the penalty combined.
Some reasons let you skip the 10% penalty, such as:
- Total and permanent disability
- Death (money paid to a beneficiary)
- Leaving your job in or after the year you turn 55, for money from that employer's plan (50, or 25 years of service, for qualified public safety employees in a government plan and for firefighters)13
- Substantially equal periodic payments (SEPP), which from a 401(k) must start after you leave that employer13
Required minimum distributions (RMDs) start at age 73, or in the year you retire if that is later and you do not own 5% of the business.5 By then you are past 59½, so the penalty no longer applies.
Hardship withdrawals are a common surprise. They let you get your money early, but they are still subject to the additional tax on early distributions unless another exception applies.3 If you only need cash for a short time, a 401k Loan Calculator run may show a cheaper path.
Roth 401(k) Withdrawals
A Roth 401(k) works the other way around. You already paid tax on the money you put in. If your withdrawal is qualified (it comes at least 5 tax years after your first Roth contribution to the plan, and you are at least 59½, disabled, or it is paid after your death), you owe no federal tax at all.4 If it is not qualified, only the earnings part is taxed.4 That earnings part may also face the 10% penalty if you are under 59½.1
Federal Tax Brackets and Bracket Creep
Federal income tax is a stair-step system. Your first dollars are taxed at 10%, the next ones at 12%, and so on up to 37%.7 A large withdrawal stacks on top of your other income, so part of it can get pushed into a higher bracket. That is why your marginal rate (the rate on your last dollar) is often higher than the average federal rate on the whole withdrawal. The effective tax rate in your results goes further: it adds federal tax, state tax and any penalty, then divides by the withdrawal.
State Taxes Matter Too
Most states tax 401(k) withdrawals as well. Eight states levy no individual income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming), and Washington taxes only capital gains, so none of those nine taxes a retirement plan withdrawal.8 Illinois lets you subtract federally taxed distributions from qualified employee benefit plans, including 401(k) plans.9 Iowa excludes retirement income for taxpayers who are 55 or older on December 31 or disabled, and for some surviving spouses.10 Pennsylvania does not tax distributions from eligible retirement plans taken after retirement age.11 Mississippi does not tax retirement income once the plan's retirement requirements are met, but early distributions do not qualify.12 Many states also give partial breaks based on your age. Where you live can change your net amount by thousands of dollars.
Withholding Is Not the Same as Your Tax Bill
Plans usually hold back 20% for federal tax on eligible rollover distributions.6 That is just a down payment, not your final bill. If your real tax and penalty add up to more than 20%, you owe the rest at tax time. If they add up to less, you get money back as a refund.
Ways to Lower the Cost
- Roll it over. Moving pre-tax money into a traditional IRA or another employer plan, by direct rollover or within 60 days, avoids tax and the penalty.6 A rollover of pre-tax money into a Roth IRA is taxed, and hardship withdrawals cannot be rolled over.6
- Split the withdrawal. Taking money over two years can keep you in a lower bracket.
- Wait if you can. Reaching 59½ drops the 10% penalty entirely.1
- Take it in a low-income year. Less other income means a smaller tax bite.
Also remember that money pulled out early stops growing. A withdrawal today costs you the tax, the penalty, and all the future growth that money would have earned. The 401k Calculator shows the size of that trade-off. Inflation shrinks the value of cash you hold, too, so a dollar you keep for later buys less than a dollar today.