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401(k) Early Withdrawal Penalty Calculator

See how much of an early 401(k) or IRA withdrawal you actually keep after the 10% penalty and income tax before age 59½.

Withdrawal amount

Marginal income tax rate

Under age 59½?

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How it works

Penalty = 10% × withdrawal (if under 59½) · Income tax = withdrawal × marginal rate · Net = withdrawal − penalty − tax

A withdrawal from a traditional 401(k) or IRA before age 59½ is generally hit twice: a flat 10% early-withdrawal penalty plus ordinary income tax at your marginal rate, because the money was never taxed going in. Between the two, a large chunk of the withdrawal never reaches your pocket. Certain exceptions (disability, some medical costs, a first home for IRAs, substantially equal periodic payments) waive the 10% penalty but not the income tax.

Worked example

On a $20,000 withdrawal at a 22% marginal rate while under 59½, the penalty is $2,000 and the income tax is $4,400. You keep $20,000 − $2,000 − $4,400 = $13,600, or 68% of what you pulled out.

Frequently asked questions

Does the penalty apply to Roth accounts too?

Roth contributions can be withdrawn tax- and penalty-free anytime, but earnings withdrawn early are generally subject to both tax and the 10% penalty. This calculator models a traditional pre-tax account, where the whole withdrawal is taxable.

What withdrawals avoid the 10% penalty?

Common exceptions include total disability, medical expenses above a threshold, a qualified first-home purchase (IRAs), higher-education costs (IRAs), and substantially equal periodic payments (72(t)). Income tax still applies even when the penalty is waived. Set the toggle to "No exception" to model those.

Is 20% automatically withheld?

Employer 401(k) plans usually withhold 20% for federal tax up front, but your actual tax depends on your full-year bracket — you may owe more or get some back at filing. This tool shows the total tax at your marginal rate, not the withholding.

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Educational estimate only, using simplified federal rules — it ignores state tax, credits, phase-outs and your full situation. Not tax, legal or financial advice; confirm with a professional.