# Owe taxes on 401(k) withdrawals?

Estimates the 2026 federal income tax, the 10% early withdrawal tax and state tax on a traditional 401(k) or IRA withdrawal, on top of your other income, and what you keep.

- Page: https://www.acalculator.org/finance/401k-withdrawal-tax-calculator
- JSON spec: https://www.acalculator.org/finance/401k-withdrawal-tax-calculator.json
- Version: efe378e04a16

## Default answer

Example with the default inputs (Withdrawal $30,000.00, Other taxable income $40,000.00, Filing status Single, People 65 or older on the return 0, Under 59½ with no exception No, State income tax rate 0%): Taking $30,000.00 out of a 401(k) with $40,000.00 of other income costs about $3,953.00 in tax; you keep $26,047.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| amount | Withdrawal | The pre-tax amount you take out of a traditional 401(k), 403(b) or IRA this year. |
| income | Other taxable income | All your other taxable income for the year before deductions: wages, pensions, the taxable part of Social Security, interest. |
| status | Filing status | Your federal filing status. |
| seniors | People 65 or older on the return | You, and your spouse on a joint return, who are 65 or older by the end of the year: 0 or 1, or up to 2 on a joint return. |
| early | Under 59½ with no exception | Whether the 10% additional tax on early distributions applies: you are under 59½ and no exception (such as leaving your job in or after the year you turn 55) covers the withdrawal. |
| state | State income tax rate | Your state’s income tax rate on the withdrawal (0 where there is none, or it is exempt). |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| net | You keep | The withdrawal minus the federal tax, the 10% additional tax and the state tax on it. |
| totalTax | Total tax on the withdrawal | Federal income tax plus the 10% additional tax plus state tax, caused by the withdrawal. |
| federalTax | Federal income tax on it | Your federal tax with the withdrawal minus your federal tax without it. |
| penalty | 10% additional tax | The tax on early distributions: 10% of the withdrawal when it applies. |
| stateTax | State tax | The withdrawal times the state rate. |
| effectiveRate | Share lost to tax | The total tax on the withdrawal divided by the withdrawal. |
| marginalRate | Top federal bracket | The federal bracket of the last dollar of the withdrawal. |
| withheld | Withheld by a 401(k) plan | A plan must withhold 20% for federal tax when it pays the money to you; IRAs withhold 10% unless you choose otherwise. |

## Method

Federal tax on the withdrawal = 2026 federal tax on (other income + withdrawal) − tax on other income alone; plus 10% of the withdrawal before 59½ with no exception; plus withdrawal × state rate.

## Assumptions

- Federal tax for tax year 2026 (IRS Rev. Proc. 2025-32): standard deduction, the extra standard deduction and the senior deduction for people 65 or older, and the regular brackets. All other income is treated as ordinary income.
- No itemized deductions, credits, or capital gains; the withdrawal can make more of your Social Security taxable, which is not included (use the taxable Social Security calculator and add the extra to other income).
- Pre-tax money only: Roth contributions and qualified Roth withdrawals are tax free, and after-tax contributions come out untaxed.
- State tax is one flat rate you enter; some states exempt part or all of retirement income.
- Withholding is a prepayment, not the tax: you get back or pay the difference when you file.

## Worked examples

1. amount = $30,000.00, income = $40,000.00, status = single, seniors = 0, early = no, state = 0% gives federalTax = $3,953.00, net = $26,047.00, marginalRate = 22%. Source: IRS Rev. Proc. 2025-32 (2026 single brackets, $16,100 standard deduction); Form 1040 Tax Table method.
2. amount = $20,000.00, income = $0.00, status = mfj, seniors = 0, early = yes, state = 5% gives federalTax = $0.00, penalty = $2,000.00, stateTax = $1,000.00, net = $17,000.00. Source: IRS Rev. Proc. 2025-32 ($32,200 joint standard deduction); IRC 72(t) 10% additional tax.
3. amount = $100,000.00, income = $150,000.00, status = mfj, seniors = 2, early = no, state = 4% gives federalTax = $24,702.00, penalty = $0.00, stateTax = $4,000.00, net = $71,298.00. Source: IRS Rev. Proc. 2025-32 (joint brackets, additional standard deduction $1,650 each over 65) and Schedule 1-A senior deduction phase-out.

## FAQ

### How are 401(k) withdrawals taxed?

Withdrawals of pre-tax money are ordinary income in the year you take them. They are added to your other income and taxed at your federal brackets (10% to 37%), and usually by your state. The tax on a withdrawal is the difference between your tax with it and without it.

### What is the 10% early withdrawal penalty?

Taking money out before age 59½ usually adds a 10% additional tax on top of income tax (IRC section 72(t)). Exceptions include leaving your job in or after the year you turn 55 (for that employer’s plan), disability, a series of substantially equal payments, and some medical, birth or adoption, and emergency expenses.

### How much does a 401(k) plan withhold?

A plan must withhold 20% for federal income tax from a distribution paid to you that could be rolled over. IRAs withhold 10% unless you choose another rate on Form W-4R. Withholding is a prepayment: the tax actually due can be more or less.

### Why is the tax on my withdrawal more than my bracket suggests?

A large withdrawal can push part of your income into higher brackets, and above $75,000 ($150,000 joint) it shrinks the new senior deduction for people 65 or older. It can also make more of your Social Security benefits taxable.

### Are Roth 401(k) withdrawals taxed?

Qualified Roth withdrawals (after 59½ and 5 years) are tax free. This calculator is for pre-tax (traditional) money.

## Sources

- Internal Revenue Service, Rev. Proc. 2025-32 (2026 tax brackets, standard deduction and additional standard deduction): https://www.irs.gov/irb/2025-45_IRB
- Internal Revenue Service, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs: https://www.irs.gov/taxtopics/tc558
- Internal Revenue Service, Topic no. 413, Rollovers from retirement plans (20% mandatory withholding): https://www.irs.gov/taxtopics/tc413
- Internal Revenue Service, Schedule 1-A (Form 1040), senior deduction (tax years 2025 to 2028): https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf
- Internal Revenue Service, Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions: https://www.irs.gov/forms-pubs/about-form-w-4-r