401(k) early withdrawal penalty calculator

The 10% additional tax

IRC section 72(t) adds a 10% tax to distributions from retirement plans taken before 59½. The IRS calls it an additional tax rather than a penalty, and it’s on top of the regular income tax on the same money. It applies to pre-tax money and to the earnings portion of a non-qualified Roth withdrawal.

Exceptions that apply to a 401(k)

Exception	Limit	Notes
Leaving your job in or after the year you turn 55	None	Only from the plan of the job you left. 50 (or 25 years of service) for qualified public safety workers
Death or total and permanent disability	None
Unreimbursed medical expenses over 7.5% of AGI	The excess	Applies whether or not you itemize
Substantially equal periodic payments	None	From a 401(k), payments must start after you leave the employer
Court order dividing the account in a divorce (QDRO)	None	Paid to the former spouse
IRS levy on the plan	Levied amount
Birth or adoption	$5,000 per child	Repayable within 3 years
Emergency personal expense	$1,000 a year	Plan must offer it; self-certified
Domestic abuse victim	$10,500 (2026) or 50% of the balance	Within 1 year of the abuse
Terminal illness	None	Physician certification
Federally declared disaster	$22,000 per disaster
Qualified military reservist called to active duty

Exceptions that don’t apply to a 401(k)

People lose money on these every year because they’re IRA rules:

• First-time home purchase, up to $10,000. IRA only.
• Higher education expenses. IRA only. (A 401(k) hardship withdrawal can cover tuition, but the 10% still applies.)
• Health insurance premiums while unemployed. IRA only.

If you need one of these, a rollover to an IRA first can make the money eligible, but you can only roll out of a 401(k) once you’ve left the job or reached the age your plan allows in-service withdrawals. And rolling to an IRA gives up the age 55 exception.

Withholding isn’t the tax

The plan withholds federal tax from the check before you get it:

• 20%, mandatory, on most withdrawals, because they’re “eligible rollover distributions.” You can’t choose less.
• 10% by default on hardship withdrawals and the other SECURE 2.0 distributions, which aren’t eligible for rollover. You can choose a different rate or none on Form W-4R.

Withholding is a prepayment. Your real bill is your bracket plus state tax plus the 10%. In the 22% bracket under 59½ that’s 32% before state tax, so 20% withholding leaves a balance due at filing. The calculator shows how much.

Before you withdraw

If you’re still working for the employer that sponsors the plan, a 401(k) loan avoids the tax entirely as long as you repay it. If you’ve already left, a withdrawal from the old plan can’t be undone, so price a personal loan against the tax you’d pay. The comparison tool puts all of it in one table.