{
  "id": "401k-early-withdrawal",
  "version": "a48d80fd7739",
  "status": "published",
  "name": "401(k) Early Withdrawal Calculator",
  "question": "Is a 401(k) early withdrawal worth it?",
  "summary": "Shows what a 401(k) early withdrawal before 59½ costs: the 10% additional tax, the 2026 federal income tax it adds, state tax, and what the money could have grown to.",
  "category": "finance",
  "subcategory": "retirement",
  "url": "https://www.acalculator.org/finance/401k-early-withdrawal-calculator",
  "markdown": "https://www.acalculator.org/finance/401k-early-withdrawal-calculator.md",
  "kind": "function",
  "method": "10% additional tax = 10% × (withdrawal − exempt part) before 59½ unless the rule of 55 applies; federal tax = 2026 tax on (other income + withdrawal) − tax on other income; state = withdrawal × rate; growth given up = withdrawal × (1 + return)^years.",
  "assumptions": [
    "Federal tax for tax year 2026 with the standard deduction and regular brackets; all other income is ordinary income, no credits.",
    "Under 59½ means an age below 59.5. The rule of 55 applies only to the plan of the employer you left, not to IRAs.",
    "Pre-tax money only. Roth contributions come out tax and penalty free; Roth earnings before 59½ are taxed and penalized.",
    "State tax is one flat rate; some states add their own early withdrawal tax, which is not included.",
    "Growth given up is before tax and fees and assumes a steady yearly return."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "amount": {
        "title": "Withdrawal",
        "description": "The pre-tax amount you take out of the 401(k).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "age": {
        "title": "Your age",
        "description": "Your age at the withdrawal, in years (59.5 for 59½), up to 64; from 65 use the 401(k) withdrawal tax calculator.",
        "type": "number",
        "minimum": 0,
        "maximum": 64
      },
      "rule55": {
        "title": "Left this employer in or after the year I turned 55",
        "description": "The rule of 55: no 10% tax on withdrawals from the plan of an employer you left in or after the year you turned 55 (50 for public safety workers).",
        "type": "boolean"
      },
      "exempt": {
        "title": "Part covered by another exception",
        "description": "Any part of the withdrawal an exception covers: disability, medical costs over 7.5% of AGI, a birth or adoption (up to $5,000), an emergency expense (up to $1,000 a year).",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "income": {
        "title": "Other taxable income",
        "description": "Your other taxable income for the year before deductions: wages, interest, other income.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 10000000000
      },
      "status": {
        "title": "Filing status",
        "description": "Your federal filing status.",
        "type": "string",
        "enum": [
          "single",
          "mfj",
          "hoh",
          "mfs"
        ]
      },
      "state": {
        "title": "State income tax rate",
        "description": "Your state income tax rate on the withdrawal (0 where there is none). Some states add their own early withdrawal tax.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "growth": {
        "title": "Yearly return if left invested",
        "description": "The yearly return the money could earn in the 401(k) if you left it there.",
        "type": "number",
        "x-unit": "percent",
        "minimum": -50,
        "maximum": 50
      },
      "years": {
        "title": "Years until you would retire",
        "description": "How many years the money could stay invested.",
        "type": "integer",
        "minimum": 0,
        "maximum": 80
      }
    }
  },
  "outputs": {
    "net": {
      "label": "You keep",
      "description": "The withdrawal minus the 10% tax, the federal income tax and the state tax on it.",
      "format": "money"
    },
    "cost": {
      "label": "Cost of the withdrawal",
      "description": "The 10% additional tax plus the federal and state income tax the withdrawal adds.",
      "format": "money"
    },
    "penalty": {
      "label": "10% additional tax",
      "description": "10% of the part not covered by an exception, before 59½.",
      "format": "money"
    },
    "federalTax": {
      "label": "Federal income tax on it",
      "description": "Your federal tax with the withdrawal minus your federal tax without it.",
      "format": "money"
    },
    "stateTax": {
      "label": "State tax",
      "description": "The withdrawal times the state rate.",
      "format": "money"
    },
    "costShare": {
      "label": "Share lost",
      "description": "The cost as a percent of the withdrawal.",
      "format": "percent"
    },
    "withheld": {
      "label": "Withheld by the plan",
      "description": "A 401(k) plan withholds 20% for federal tax from a withdrawal paid to you.",
      "format": "money"
    },
    "futureValue": {
      "label": "Left invested, it could grow to",
      "description": "The withdrawal grown at the yearly return for the years given, before tax.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "amount": 20000,
      "age": 40,
      "rule55": false,
      "exempt": 0,
      "income": 60000,
      "status": "single",
      "state": 0,
      "growth": 6,
      "years": 25
    },
    "outputs": {
      "net": 14247,
      "cost": 5753,
      "penalty": 2000,
      "federalTax": 3753,
      "stateTax": 0,
      "costShare": 28.765,
      "withheld": 4000,
      "futureValue": 85837.41439486976
    },
    "text": "Taking $20,000.00 out early at age 40 costs about $5,753.00; you keep $14,247.00."
  },
  "examples": [
    {
      "given": {
        "amount": 20000,
        "age": 40,
        "rule55": false,
        "exempt": 0,
        "income": 60000,
        "status": "single",
        "state": 5,
        "growth": 6,
        "years": 25
      },
      "expect": {
        "penalty": 2000,
        "federalTax": 3753,
        "stateTax": 1000,
        "net": 13247,
        "futureValue": 85837.41439486976
      },
      "source": "IRC 72(t) 10% additional tax (IRS Topic 558); 2026 single brackets (Rev. Proc. 2025-32); hand calculation in content.mdx"
    },
    {
      "given": {
        "amount": 50000,
        "age": 56,
        "rule55": true,
        "exempt": 0,
        "income": 0,
        "status": "mfj",
        "state": 0,
        "growth": 0,
        "years": 0
      },
      "expect": {
        "penalty": 0,
        "federalTax": 1783,
        "net": 48217,
        "futureValue": 50000
      },
      "source": "IRS Topic 558 (separation from service in or after the year you reach 55); hand calculation in content.mdx"
    },
    {
      "given": {
        "amount": 10000,
        "age": 35,
        "rule55": false,
        "exempt": 5000,
        "income": 30000,
        "status": "hoh",
        "state": 0,
        "growth": 7,
        "years": 0
      },
      "expect": {
        "penalty": 500,
        "federalTax": 1000,
        "net": 8500
      },
      "source": "IRS Topic 558 (qualified birth or adoption distribution up to $5,000); 2026 head of household brackets; hand calculation in content.mdx"
    }
  ],
  "sources": [
    "Internal Revenue Service, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (exceptions): https://www.irs.gov/taxtopics/tc558",
    "Internal Revenue Code section 72(t) (10% additional tax and exceptions, including 72(t)(2)(I) emergency personal expense distributions up to $1,000): https://www.law.cornell.edu/uscode/text/26/72",
    "Internal Revenue Service, Rev. Proc. 2025-32 (2026 tax brackets and standard deduction): https://www.irs.gov/irb/2025-45_IRB",
    "Internal Revenue Service, Topic no. 413, Rollovers from retirement plans (20% withholding): https://www.irs.gov/taxtopics/tc413"
  ],
  "related": [
    "401k-withdrawal-tax",
    "401k-withdrawal",
    "roth-conversion"
  ],
  "changelog": []
}