Taking money out of a 401(k) before age 59½ is expensive. On top of ordinary federal and state income tax on the amount, the IRS adds a 10% early-withdrawal penalty — so a large chunk of your cash-out never reaches your pocket.
This calculator shows the damage plainly: the 10% penalty, your estimated federal and state tax, and the net you'd actually keep — so you can weigh it against alternatives like a 401(k) loan before deciding.
Frequently asked questions
What is the 401(k) early withdrawal penalty?
Withdrawals before age 59½ generally incur a 10% federal penalty on top of ordinary income tax on the amount withdrawn.
Are there exceptions to the penalty?
Yes — certain hardships, disability, medical costs above a threshold, and some other cases can waive the 10%. Rules are specific, so confirm with a tax professional.
Is this tax advice?
No — it's an estimate for planning only. Your actual tax depends on your full income and situation. Speak to a qualified advisor before withdrawing.