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401k Withdrawal Calculator
Use this free 401k withdrawal calculator to see how much of your withdrawal you actually keep. Enter the amount, your age, and your tax rates, and it subtracts federal tax, state tax, and the 10% early withdrawal penalty when it applies. Switch to RMD mode to work out your required minimum distribution from age 73 onward.
The return rate is only used for the balance chart below. In RMD mode the withdrawal is your account balance divided by the IRS Uniform Lifetime Table divisor for your age.
| Withdrawal amount | $50,000.00 |
| Early withdrawal penalty (10%) | $0.00 |
| Federal income tax (22%) | −$11,000.00 |
| State income tax (5%) | −$2,500.00 |
| Net amount received | $36,500.00 |
Where your withdrawal goes
The diagram uses the default example: a $50,000 withdrawal at age 60, taxed at 22% federal and 5% state, with no penalty because the saver is past 59½.
Balance over 10 years
Assumes the same withdrawal each year and the return rate above.
How it works
A 401(k) withdrawal is not free money. With a traditional 401(k), every dollar you contributed went in before tax, so every dollar you take out is taxed as ordinary income in the year you withdraw it. This calculator starts with the gross withdrawal and subtracts three things: federal income tax, state income tax, and — only if you are under 59½ — the 10% early withdrawal penalty. What is left is the net amount you actually receive.
Your age is the first thing that matters. The IRS charges a 10% additional tax on most withdrawals taken before age 59½. The penalty is charged on the full withdrawal amount, on top of the income tax, so an early withdrawal can easily lose a third of its value. Once you reach 59½ the penalty disappears, but the income tax never does. A few exceptions can waive the penalty — disability, certain medical expenses, and leaving your job in or after the year you turn 55 are the common ones — but this calculator applies the penalty whenever the age entered is below 59.5, so you can see the worst case.
The federal tax rate you enter should be your marginal rate, the rate on your last dollar of income, not your average rate across all income. That is the rate the extra withdrawal is taxed at. State tax works the same way, and it varies a lot: some states have no income tax at all, while others tax retirement withdrawals at several percent. Enter 0 for the state rate if your state has no income tax. Note that the federal and state rates are applied to the full gross withdrawal in this calculator, which is a planning estimate — your real tax bill depends on your total income, deductions, and credits for the year.
RMD mode works differently. Once you reach age 73, the IRS requires you to withdraw a minimum amount from a traditional 401(k) every year. The amount is your account balance at the end of the previous year divided by a divisor from the IRS Uniform Lifetime Table, which is based on your age and a joint life expectancy. At 73 the divisor is 26.5, so a $500,000 balance gives an RMD of about $18,868. The divisor shrinks as you age — 24.6 at 75, 20.2 at 80, 16.0 at 85 — so the required withdrawal grows as a share of the balance each year. RMDs are still taxed as ordinary income, and the same federal and state rates apply. The balance chart shows what happens to a $300,000 balance if you withdraw the same amount every year while the rest keeps earning the return rate you enter.
RMD = Account balance ÷ Uniform Lifetime Table divisor for your age
The chart underneath the diagram projects your balance over ten years. Each year it subtracts the annual withdrawal, then grows what is left by the return rate. With the defaults — a $300,000 balance, a $50,000 yearly withdrawal, and 5% growth — the balance falls to zero in about seven years, which is a useful warning: a withdrawal that feels affordable this year can drain an account faster than it looks.
Worked example
Take a saver aged 60 who withdraws $50,000 from a traditional 401(k). Her federal marginal rate is 22% and her state rate is 5%. Enter those values and the calculator works like this.
Step 1: Check the penalty. She is 60, which is past 59½, so the 10% early withdrawal penalty is $0.
Step 2: Federal tax is 22% of $50,000, which is $11,000.
Step 3: State tax is 5% of $50,000, which is $2,500.
Step 4: Subtract both taxes from the withdrawal: $50,000 − $11,000 − $2,500 = $36,500.
The tool shows the same result: a net amount of $36,500.00, keeping 73% of the withdrawal. If the same saver had been 50 instead, the 10% penalty would take another $5,000 and the net would fall to $31,500. In RMD mode, a 73-year-old with a $500,000 balance has an RMD of $500,000 ÷ 26.5 = $18,867.92, and after 22% federal and 5% state tax the net is $13,773.58.
FAQ
What is the 10% early withdrawal penalty on a 401(k)?
If you take money out of a 401(k) before age 59 and a half, the IRS generally adds a 10% early withdrawal penalty on top of the regular income tax on the withdrawal. So a $20,000 withdrawal at age 50 costs a $2,000 penalty plus whatever federal and state income tax applies. Some exceptions exist, such as disability, certain medical expenses, and separation from service at age 55 or later.
At what age can I withdraw from my 401(k) without a penalty?
Withdrawals are generally penalty-free once you reach age 59 and a half. You still owe ordinary income tax on traditional 401(k) withdrawals at any age, because the money went in pre-tax. The age 55 rule is a separate exception: if you leave your job in or after the year you turn 55, withdrawals from that employer's plan may escape the penalty.
What is a required minimum distribution (RMD)?
A required minimum distribution is the smallest amount you must withdraw from a traditional 401(k) each year once you reach age 73. The amount is your account balance at the end of the previous year divided by a life-expectancy divisor from the IRS Uniform Lifetime Table. For example, at age 73 the divisor is 26.5, so a $500,000 balance gives an RMD of about $18,868. Missing an RMD can trigger a steep excise tax.
Is a 401(k) withdrawal taxed as income?
Yes. Withdrawals from a traditional 401(k) are taxed as ordinary income in the year you take them, at your marginal federal tax rate, plus state income tax where your state taxes retirement income. That is why a large lump-sum withdrawal can push you into a higher bracket. Roth 401(k) withdrawals are different: qualified withdrawals of contributions and earnings are generally tax-free.
Should I take a lump sum or smaller withdrawals from my 401(k)?
Smaller withdrawals spread over several years usually cost less tax than one big lump sum, because a lump sum can push a chunk of the money into a higher tax bracket in a single year. Smaller withdrawals also leave more money invested and growing. The right choice depends on your income in each year, your age, and what you need the money for, so run both scenarios in this calculator and compare the net amounts.