401(k) Early Withdrawal Calculator

Taxes and the 10% penalty in 2026

$
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$
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5.00%
0.00%13.00%

You keep after tax

$13,250

Total cost

$6,750

Share lost

33.8%

Federal bracket

22%

Before 59½ this withdrawal owes a 10% additional tax of $2,000 on top of income tax, unless an IRS exception applies.

Federal income tax

$3,750

The extra tax this withdrawal adds, at 2026 rates

10% additional tax

$2,000

Early distribution penalty

State income tax

$1,000

At 5.00%

Assumes the whole withdrawal is pre-tax money. Roth accounts and after-tax contributions are taxed differently.

What an early withdrawal costs

Money taken from a 401(k), 403(b), TSP or traditional IRA is added to your income for the year and taxed at your ordinary rates. The calculator works out your federal tax with and without the withdrawal, using the 2026 brackets and standard deduction, so the tax shown is what this withdrawal adds.

Before 59½, the part included in income also owes a 10% additional tax, reported on Form 5329, unless an exception applies. State tax is added at the rate you enter, since each state taxes these withdrawals differently. The example: a single filer earning $60,000 who takes $20,000 at 45 loses 28.7% of it to federal tax and the 10% before any state tax.

Exceptions to the 10% additional tax

Exception 401(k) and other plans IRAs Limit
Age 59½ or older Yes Yes
Leaving your job in or after the year you turn 55 (rule of 55) Yes, that employer's plan No
Qualified public safety employees leaving at 50, or after 25 years of service Yes No
Substantially equal periodic payments (72(t)) Yes, after leaving the employer Yes
Total and permanent disability Yes Yes
Terminal illness certified by a physician Yes Yes
Death (paid to a beneficiary) Yes Yes
Unreimbursed medical expenses above 7.5% of AGI Yes Yes
Birth or adoption Yes Yes $5,000 per child
Emergency personal expense Yes Yes $1,000 a year
Domestic abuse victim Yes Yes $10,500 or 50% of the balance, if less
Federally declared disaster Yes Yes $22,000 per disaster
Long-term care insurance premiums Yes, defined contribution plans No $2,600 in 2026
First home purchase No Yes $10,000 lifetime
Higher education expenses No Yes
Health insurance premiums while unemployed No Yes
Payment to an ex-spouse under a court order (QDRO) Yes No
Military reservists called to active duty Yes Yes
IRS levy Yes Yes

From the IRS exceptions page, Publication 590-B, the Form 5329 instructions and IRC section 72(t), checked September 26, 2026. The IRS web page still lists the older $10,000 domestic abuse limit and leaves out the long-term care exception and the 25-year public safety rule; the figures here follow the law and the 2026 limits. The exceptions remove only the 10%; income tax still applies.

Getting money out early without the 10%

If you plan to retire before 59½, three routes avoid the additional tax: the rule of 55 from your last employer's plan, a fixed series of payments worked out with the 72(t) calculator, and a Roth conversion ladder, checked with the Roth conversion calculator. See also Can I retire at 55?

Sources

Frequently Asked Questions

How much tax do I pay on a 401(k) early withdrawal?
Income tax at your ordinary rates plus a 10% additional tax, and usually state tax. A single filer earning $60,000 who withdraws $20,000 at 45 in 2026 owes about $3,750 of federal income tax and $2,000 of additional tax, keeping $14,250 before state tax.
What is the rule of 55?
If you leave your employer in or after the calendar year you turn 55, withdrawals from that employer's 401(k) are free of the 10% additional tax. In the example above that saves $2,000, leaving $16,250. It does not apply to IRAs or to plans from earlier jobs; qualified public safety employees can use it from 50 or after 25 years of service.
Does the rule of 55 apply to IRAs?
No. The separation-from-service exception only covers employer plans. Rolling a 401(k) into an IRA before you withdraw gives up the rule of 55 for that money.
How can I take money out before 59½ without the penalty?
Through one of the IRS exceptions in the table on this page. For early retirees the main routes are the rule of 55, a series of substantially equal periodic payments under 72(t), and Roth conversions, whose converted amounts can be withdrawn after 5 years.
Is the 10% penalty on the whole withdrawal?
It applies to the part of the early withdrawal that is included in your income. After-tax contributions you get back are not taxed again, and in a SIMPLE IRA the rate is 25% instead of 10% during the first 2 years of participation.
Do governmental 457(b) plans have the 10% penalty?
No. Distributions from a governmental 457(b) plan are not subject to the 10% additional tax, except for money that was rolled in from another type of plan or an IRA. They are still taxed as income.

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