401(k) early withdrawal penalty calculator
Cashing out a 401(k) before age 59½ usually triggers a 10% IRS penalty on top of ordinary income tax. See how much actually reaches your pocket, using your own marginal tax rate — not a guess.
Not sure of your federal marginal rate? Check your last tax return's bracket, or use your total taxable income and filing status to look up the current-year IRS bracket — this calculator uses whatever rate you enter rather than assuming one for you.
10% early withdrawal penalty
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Estimated federal tax
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Estimated state tax
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What you actually take home
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Last updated: September 2026 · Verified by Hugo Cardozo.
The 10% penalty, in plain terms
Withdrawing from a traditional 401(k) before age 59½ generally triggers a 10% early withdrawal penalty from the IRS, charged on top of ordinary income tax on the withdrawn amount — the penalty alone doesn't replace the tax, it stacks on it.
Why this calculator asks for your own tax rate
Federal income tax brackets change income thresholds most years and depend on your filing status and total taxable income for the year — a number only you (or your tax preparer) can pin down accurately. Rather than guess or risk showing an outdated bracket, this tool uses the marginal rate you enter, so the estimate reflects your actual situation.
Worked example
Withdrawing $10,000 at age 45, with a 22% federal marginal rate and a 5% state rate: the 10% penalty is $1,000, federal tax is $2,200, state tax is $500 — a total of $3,700 taken, leaving $6,300 actually in hand.
Exceptions to the penalty
The IRS carves out several exceptions where the 10% penalty doesn't apply — including separation from service in or after the year you turn 55, certain disability or medical expense situations, qualified birth or adoption expenses, and a few others. None of these exceptions remove the ordinary income tax owed, only the extra 10% penalty. Confirm your situation qualifies before assuming the penalty doesn't apply.
Consider the alternatives first
A 401(k) loan (if your plan allows one), a home equity line, or a hardship withdrawal from an account without an early-withdrawal penalty can sometimes cost less than cashing out a 401(k) early — and cashing out also permanently removes that money's future tax-advantaged growth, on top of what's lost to taxes and the penalty today.
Frequently asked questions
Does this apply to Roth 401(k) withdrawals the same way?
The 10% penalty can still apply to the earnings portion of an early Roth 401(k) withdrawal, though your original contributions are typically not taxed again since they were made with after-tax dollars. Roth rules have their own nuances — this calculator assumes a traditional (pre-tax) 401(k).
What about a 401(k) rollover to an IRA — does that trigger the penalty?
No — a direct rollover to another qualified retirement account isn't a withdrawal and doesn't trigger tax or the penalty. The penalty applies specifically to money you take out and keep.
Is state tax always owed?
No — a handful of states have no state income tax at all. Enter 0 for the state rate if that applies to you, or check your specific state's rules if you're unsure.
📘 Related guide
Read the full guide: "What a 401(k) Early Withdrawal Really Costs You".
What a 401(k) Early Withdrawal Really Costs You