401(k) Withdrawal Tax Calculator

See the federal tax, state tax and 10% early-withdrawal penalty on a 401(k) distribution in 2026, how the mandatory 20% withholding compares with what you actually owe, and whether the Rule of 55 saves you the penalty.

By NumbersLab Editorial·Updated for 2026 tax year·Editorial standards

Retiree reviewing a 401(k) statement — representing the tax, penalty and withholding on a 401(k) withdrawal — Photo by Vlad Sargu on Unsplash

Interactive Calculator

All inputs adjust the result in real time. No data leaves your browser.

Tax Year

401(k) Withdrawal Amount

Your Age

years

Filing Status

State of Residence

Other Taxable Income This YearWages, pension, interest — before this withdrawal

Social Security Benefits This Year

Rule of 55 appliesYou left the employer that sponsors this 401(k) in or after the year you turned 55, and the money is still in that plan.Direct rollover to an IRA (no cash to you)Trustee-to-trustee transfer: no 20% withholding and no tax this year.

Net After Tax and Penalty

$37,59524.8% of the withdrawal

from a $50,000 401(k) withdrawal in Texas

Federal Income Tax

$7,405

22.0% marginal bracket

Texas State Tax

No state income tax

10% Early Penalty

$5,000

Under 59½, no exception

Withheld Now (20%)

$10,000

mandatory on cash distributions

What hits your account vs. what you owe

Gross withdrawal$50,000

20% federal withholding taken by the plan−$10,000

Cash deposited to you$40,000

Actual federal tax + penalty on this withdrawal$12,405

Additional federal tax owed at filing$2,405

Net you keep after all tax$37,595

Early withdrawal: the 10% additional tax applies. If you separated from this employer at 55 or later, tick the Rule of 55 box. Other exceptions: disability, 72(t) payments, medical costs above 7.5% of AGI, QDRO, $1,000 emergency, $5,000 birth/adoption.

The Background

A withdrawal from a traditional 401(k) is ordinary income in the year you take it. It stacks on top of your wages, pension and the taxable part of Social Security, so the tax on it is whatever your top brackets are once it is added — not a flat rate. This calculator computes your federal and state tax with and without the withdrawal, which also captures any Social Security benefits the withdrawal pushes into the taxable range.

Plans must withhold 20% federal tax from any 401(k) distribution that is eligible for rollover and paid to you rather than transferred directly to an IRA or another plan. That 20% is a deposit, not the bill: a retiree in the 12% bracket gets most of it back at filing, while someone in the 32% bracket with the 10% penalty on top owes considerably more in April. The only way to avoid the withholding is a direct (trustee-to-trustee) rollover, in which case nothing is taxed at all.

Under 59½, the IRS adds a 10% additional tax unless an exception applies. The exception unique to 401(k)s is the Rule of 55: if you leave the employer sponsoring the plan in or after the calendar year you turn 55 (50 for qualified public-safety employees), withdrawals from THAT plan are penalty-free — but roll the money to an IRA and the exception is lost. Other exceptions include disability, substantially equal periodic payments (72(t)), medical expenses above 7.5% of AGI, a QDRO in divorce, up to $1,000 a year for personal emergencies, and $5,000 for a birth or adoption.

A hardship withdrawal is not an exception. It lets you take money out while still employed, but it is fully taxable and the 10% penalty still applies if you are under 59½. A 401(k) loan — up to the lesser of $50,000 or half your vested balance — is not a distribution and is not taxed, as long as it is repaid; if you leave the job with a loan outstanding, the balance becomes a taxable distribution at the tax-filing deadline.

State treatment varies. Nine states have no income tax. Illinois, Mississippi and Pennsylvania exempt qualified retirement distributions entirely; many others exclude a fixed amount for retirees over a certain age. Elsewhere the withdrawal is taxed as ordinary income at the state's regular brackets. Roth 401(k) withdrawals are tax-free once the account is five years old and you are 59½; before that, the earnings portion is taxable and may be penalized.

Frequently Asked

How much tax do you pay on a 401(k) withdrawal?+

The withdrawal is ordinary income, so it is taxed at whatever federal bracket it lands in once added to your other income for the year — 10% to 37% — plus state income tax in most states, plus a 10% additional tax if you are under 59½ with no exception. A retiree with $30,000 of other income taking $50,000 from a 401(k) in 2026 pays roughly $8,000 of federal tax on it (an effective 16%); the same withdrawal at age 50 with the penalty costs about $13,000 before state tax.

Why did my 401(k) plan withhold 20%?+

Federal law requires plans to withhold 20% from any distribution that could have been rolled over but was paid to you instead. It is a prepayment, not the actual tax. If your real rate on the withdrawal is 12%, the excess comes back as a refund when you file; if your real rate plus penalty is 34%, you owe the difference in April. A direct rollover to an IRA avoids the withholding entirely.

What is the Rule of 55?+

If you leave the employer that sponsors your 401(k) in or after the calendar year you turn 55 (50 for qualified public-safety workers), you can take distributions from that plan without the 10% early-withdrawal penalty, even though you are under 59½. Ordinary income tax still applies. The exception covers only that employer's plan — money from an older 401(k) or rolled into an IRA does not qualify — so the usual advice is to leave the balance in the plan until 59½ if you expect to need it. IRAs have their own exceptions; see the IRA withdrawal tax calculator.

Does a hardship withdrawal avoid taxes or the penalty?+

No. A hardship withdrawal is a plan rule that lets you take money out while still working for an immediate and heavy financial need (medical bills, eviction, tuition, funeral costs, home repair after a casualty). It is fully taxable and the 10% penalty still applies under 59½ unless a separate IRS exception — such as medical expenses above 7.5% of AGI — happens to cover it. A 401(k) loan, if your plan allows one, is usually cheaper: no tax, no penalty, repaid through payroll.

Which states don't tax 401(k) withdrawals?+

The nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) and three that exempt qualified retirement income outright: Illinois, Mississippi and Pennsylvania (at retirement age). Many others exclude a fixed amount — for example Georgia's $65,000 exclusion at 65, South Carolina's $10,000 at 65, Iowa's full exclusion at 55 — and tax the rest at regular rates. The calculator applies the full exemptions; partial exclusions are described on each state's page.