401(k) Withdrawal Tax Calculator

Traditional 401(k) and IRA withdrawals are taxed as ordinary income. Before age 59½ a 10% additional tax usually applies unless an exception fits.

Updated 2026-10-03 · 2026 IRS figures

Cash you keep$15,25023.8% lost to taxes and penalty · 20% is withheld up front on eligible rollover distributions

Federal income tax	$2,750
Early withdrawal penalty (10%)	$2,000
State tax	$0

You keep $15,250 76.3%
Federal $2,750 13.8%
Penalty $2,000 10.0%

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Key 2026 federal tax facts

For 2026, Social Security tax of 6.2% applies to wages up to $184,500, up from $176,100 in 2025.
Medicare tax of 1.45% applies to all wages with no cap, plus a 0.9% Additional Medicare Tax on wages above $200,000 ($250,000 for married couples filing jointly).
The 2026 standard deduction is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household.
The seven federal income tax rates of 10%, 12%, 22%, 24%, 32%, 35% and 37% were made permanent by the One, Big, Beautiful Bill Act.
In 2026 the 37% top rate applies to taxable income over $640,600 for single filers and over $768,700 for married couples filing jointly.
The Child Tax Credit is $2,200 per qualifying child for 2026, of which up to $1,700 is refundable.

States that don’t tax retirement income

Three separate costs of taking money out early

A withdrawal from a traditional 401(k) or IRA can trigger three different charges, and it helps to keep them apart: ordinary federal income tax on the whole taxable amount, state income tax in most states, and a 10% additional tax if you are under 59½ and no exception applies. Up-front withholding is a fourth number, and it is only a prepayment toward the first.

Example: a single filer with $50,000 of other income withdraws $20,000 at age 45. The withdrawal adds about $2,750 of 2026 federal income tax and a $2,000 additional tax, leaving roughly $15,250 before state tax — 76% of the withdrawal. The same withdrawal at age 60 would leave about $17,250.

How much is withheld up front

Neither rate is your actual tax. If 20% was withheld but your marginal federal rate is 22% plus a 10% additional tax, you will owe the difference when you file.

From a 401(k) or other employer plan: a distribution that could have been rolled over but is paid to you is an "eligible rollover distribution", and the plan must withhold 20% for federal tax. You can choose a higher rate on Form W-4R, but not a lower one.
From an IRA: one-off (nonperiodic) withdrawals default to 10% federal withholding. On Form W-4R you can pick any rate from 0% to 100%, though generally not less than 10% if the payment is delivered outside the United States.
State withholding depends on your state’s rules and is separate.

Exceptions to the 10% additional tax

Income tax always applies to pre-tax money, but the extra 10% can be avoided in specific situations. Some exceptions apply only to employer plans, some only to IRAs. You claim most of them on Form 5329.

Exception	401(k) / employer plan	IRA
Leaving your job in or after the year you turn 55 (50 for qualified public safety employees)	Yes	No
Total and permanent disability, or death	Yes	Yes
Series of substantially equal periodic payments	Yes	Yes
Unreimbursed medical expenses above 7.5% of AGI	Yes	Yes
Emergency personal expense, up to $1,000 per year	Yes	Yes
Birth or adoption, up to $5,000 per child	Yes	Yes
Domestic abuse victim, up to $10,000 or 50% of the account	Yes	Yes
Qualified disaster recovery, up to $22,000	Yes	Yes
First-time home purchase, up to $10,000 lifetime	No	Yes
Qualified higher education expenses	No	Yes
Health insurance premiums while unemployed	No	Yes
IRS levy on the account	Yes	Yes

Rolling over instead of cashing out

If you are leaving a job, a direct rollover — where the plan pays the money straight to an IRA or your new employer’s plan — avoids withholding and tax entirely. If the plan pays you instead, you have 60 days to deposit the money into an IRA or plan. To roll over the full amount you must replace the 20% that was withheld from other savings; any part you don’t replace is treated as a taxable distribution.

You can do only one IRA-to-IRA rollover in any 12-month period, counting all your IRAs together. Direct trustee-to-trustee transfers and rollovers from employer plans don’t count toward that limit.

At the other end: required minimum distributions

You generally must start taking required minimum distributions from traditional IRAs and workplace plans at age 73. The first RMD can wait until April 1 of the year after you turn 73, but then two distributions fall in the same tax year. Missing an RMD triggers a 25% excise tax on the amount not taken, reduced to 10% if corrected within two years.

Roth IRAs and designated Roth 401(k) or 403(b) accounts have no required distributions during the owner’s lifetime. RMDs are taxed as ordinary income, which is why the calculator’s "other income" field matters for retirees: Social Security, pensions and RMDs together determine your bracket.

Frequently asked questions

How much tax is withheld from a 401(k) withdrawal?

Plans must withhold 20% federal tax on eligible rollover distributions paid to you. Your actual tax may be higher or lower.

Can I avoid the 20% withholding on a 401(k) cash-out?

Only by not taking the money as cash. A direct rollover to an IRA or another plan is not subject to withholding. A cash distribution from an employer plan always has at least 20% withheld.

Is the 10% penalty in addition to income tax?

Yes. The 10% additional tax is added on top of the regular income tax on the withdrawal unless an exception applies.

What is the $1,000 emergency withdrawal?

Since 2024 you can take one distribution of up to $1,000 per calendar year for an emergency personal or family expense without the 10% additional tax. It is still subject to income tax.

Does the rule of 55 apply to my IRA?

No. The age-55 separation exception applies only to the employer plan of the job you leave. Rolling that money into an IRA before withdrawing gives up the exception.

Which form shows my withdrawal?

The plan or IRA custodian sends Form 1099-R showing the gross distribution, taxable amount and tax withheld. Use Form 5329 to report the additional tax or claim an exception.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.