401(k) Early Withdrawal Calculator

Taxes and the 10% penalty in 2026

Estimated net, not withholding

$13,250

Federal $3,750 · Additional tax $2,000 · State $1,000

Pre-tax inputs and exception limits

Account

Amount to Withdraw

Age at Withdrawal

Filing Status

Other Income This Year

Wages and other taxable income before deductions

State Income Tax Rate

Your state's rate on this income; 0% if your state has no income tax

5.00%

0.00%13.00%

I left this employer in or after the year I turned 55Another IRS exception covers this entire withdrawal

Check only after verifying eligibility for the entire amount. A partial exception or rolled-in 457(b) money needs a separate calculation; this form does not allocate it.

Estimated net after modeled 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, after-tax basis and partial exceptions are not modeled. This is estimated tax cost, not a withholding or payment quote. Check input and exception limits.

By the Coast FIRE Calculator editorial team · Methodology · Official sources: IRS: Retirement topics - Exceptions to tax on early distributions; IRS Publication 590-B: Distributions from IRAs · Sources checked September 26, 2026 · Corrections: hello@coastfirecalculator.io

What the inputs and net result mean

Tax cost is not withholding

Enter the gross pre-tax withdrawal, not the cash your plan will send. Other Income is taxable income before deductions, excluding this withdrawal. The net result subtracts modeled federal income tax, the additional tax and your flat state-rate estimate; it does not predict withholding or your final return.

An exception is a condition, not a deduction

The checkbox removes the additional tax from the entire withdrawal; it does not decide whether you qualify. Do not use it for only a partly exempt amount. Income tax can remain due. The rule of 55 is for the employer plan you left, not an IRA. Governmental 457(b) money rolled in from another plan or IRA needs separate treatment.

Input scope checked October 16, 2026 against IRS Topic 558 and the IRS exceptions table below. This model assumes a wholly taxable withdrawal and the standard deduction, not Roth basis, itemized deductions, credits or income-dependent benefit changes. For inherited money, start with the inherited IRA distribution rules instead of assuming your own age determines the additional tax.

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

First-home and education: IRA only

These purpose-based exceptions do not cover a 401(k) distribution. For a qualifying IRA first-home withdrawal, check the $10,000 lifetime cap, 120-day spending deadline and 2-year no-ownership test (including your spouse if married). For education, verify eligible expenses and tax-free assistance before marking the whole amount exempt.

72(t): a series, not a one-off exemption

A SEPP generally must run until the later of 5 years or age 59½. An impermissible change can bring recapture tax plus interest. The amount is determined for a specific account, not chosen freely for each withdrawal. Use the 72(t) payment estimate to explore methods; this tax-cost form does not establish or monitor a compliant series.

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	Generally continue until the later of 5 years or age 59½; changes can trigger recapture
Total and permanent disability	Yes	Yes
Terminal illness certified by a physician	Yes	Yes	Distribution on or after certification; expected death within 84 months
Death (paid to a beneficiary)	Yes	Yes
Unreimbursed medical expenses above 7.5% of AGI	Yes	Yes	Only qualifying unreimbursed expenses above 7.5% of AGI; not the whole medical bill
Birth or adoption	Yes	Yes	$5,000 per child
Emergency personal expense	Yes, if eligible	Yes, if eligible	Lesser of $1,000 or vested balance minus $1,000; later distributions can be restricted
Domestic abuse victim	Yes	Yes	$10,500 or 50% of the balance, if less
Federally declared disaster	Yes	Yes	$22,000 per disaster
Certified long-term care insurance premiums	If the eligible defined contribution plan offers it	No	Least of qualifying premiums, 10% of vested benefit, or $2,600 in 2026; required premium statement
First home purchase	No	Yes	$10,000 lifetime; qualified acquisition costs within 120 days; 2-year no-ownership test
Higher education expenses	No	Yes	Qualified expenses for the year after applicable tax-free assistance
Health insurance premiums while unemployed	No	Yes	Qualifying premiums; generally 12 consecutive weeks of unemployment compensation, year/timing conditions, and no later than 60 days after reemployment
Payment to an alternate payee under a QDRO	Yes	No	A qualifying domestic relations order, not any divorce withdrawal
Military reservists called to active duty	Yes	Yes
IRS levy	Yes	Yes

First-home, education, medical and SEPP summaries checked October 17, 2026 against Publication 590-B and the IRS SEPP guidance. AGI is adjusted gross income, not the Other Income input; this form does not calculate expense-based eligibility. Check the source conditions before applying an exception.

Selected exception conditions and 2026 limits checked October 16, 2026. This is a summary, not an eligibility checklist or a promise that a plan permits a distribution. Blank limits do not mean unlimited eligibility. The IRS general table uses an older domestic-abuse amount; Notice 2025-67 gives $10,500 for 2026 (still limited to 50% of the balance). Terminal-illness IRA treatment is described in Publication 590-B. Long-term care follows Notice 2026-33: certified coverage and the required premium statement are necessary, and spouse coverage needs a joint return for the additional-tax exception. Income tax may remain due.

If only part of your withdrawal qualifies

For example, if a wholly taxable $5,000 withdrawal has $1,000 that genuinely qualifies for an exception, the remaining $4,000 has $400 of additional tax at 10%, not $0. This form does not split exempt and nonexempt amounts: leave the whole-withdrawal checkbox off when only part qualifies, then reconcile the eligible amount separately using Form 5329. Its unchecked $500 is not the adjusted $400. This example does not establish eligibility or remove ordinary income tax.

Getting money out early without the 10%

If you plan to retire before 59½, compare account-specific routes rather than treating an exception as automatic: the rule of 55 for the employer plan you left, a compliant series explored 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?

An IRS exception must fit both your account and the distribution. The rule of 55 is employer-plan specific; first-home and education exceptions are IRA-specific. A 72(t) series carries ongoing payment and duration requirements. This calculator estimates tax cost after your selection; it does not establish eligibility.

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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