Total cost of withdrawing now
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See exactly what an early withdrawal really costs — the 10% penalty, income tax at your actual marginal bracket, and the growth you're giving up by not leaving it invested.
Withdrawing from a traditional 401(k) before age 59½ triggers two separate costs: a flat 10% early withdrawal penalty from the IRS, and ordinary income tax on the full withdrawal amount. Because U.S. tax brackets are progressive, this calculator stacks your withdrawal on top of your other income — so if it pushes part of the withdrawal into a higher bracket, only that portion is taxed at the higher rate, not the whole amount. A small number of exceptions to the 10% penalty exist (disability, certain medical expenses, the Rule of 55, and others) — this calculator assumes none apply.
penalty = withdrawal × 10% · tax = withdrawal taxed progressively on top of existing income · total cost = penalty + tax
Generally, any withdrawal from a traditional 401(k) before age 59½, unless a specific IRS exception applies (certain disabilities, some medical expenses, separation from service at 55 or later under the Rule of 55, and a few others).
Yes. The withdrawal is taxed as ordinary income at your marginal rate, and the 10% early withdrawal penalty is an additional separate cost on top of that tax.
U.S. federal tax brackets are progressive — a large withdrawal stacked on top of your existing income can push part of it into a higher bracket, so the real tax owed depends on where your income already sits, not just the withdrawal amount alone.
No — this estimates federal tax and the federal 10% penalty only. Most states also tax early withdrawals as income, so your actual total cost is likely higher than shown here.