401(k) Early Withdrawal Penalty Calculator - Calculate Tax & Penalties

401(k) Early Withdrawal Penalty Calculator

Withdrawal Amount

($)

Early Withdrawal Penalty Rate

(%)

Federal Income Tax Rate

(%)

State Income Tax Rate

(%)

Local Income Tax Rate

(%)

I qualify for IRS penalty exemptions (hardship, medical expenses, first-time home purchase, etc.)

Yes

I am permanently and totally disabled as defined by the IRS

Yes

I am age 55 or older in the year I separated from service with my employer

Yes

Withdrawal Breakdown

Net Amount You Receive

Early Withdrawal Penalty

Federal Income Tax Withholding

State Income Tax Withholding

Local Income Tax Withholding

Total Tax Withholding

Total Deductions (Tax + Penalty)

How Do You Calculate the 401(K) Early Withdrawal Penalty?

Basic Calculation Process:

Step 1: Early Withdrawal Penalty

Penalty = Withdrawal Amount × 10% (if no exemptions)

Penalty = $0 (if exemptions apply)

Step 2: Federal Income Tax

Federal Tax = Withdrawal Amount × Federal Tax Rate

Step 3: State Income Tax

State Tax = Withdrawal Amount × State Tax Rate

Step 4: Local Income Tax

Local Tax = Withdrawal Amount × Local Tax Rate

Step 5: Total Deductions

Total Deductions = Penalty + Federal Tax + State Tax + Local Tax

Step 6: Net Amount Received

Net Amount = Withdrawal Amount - Total Deductions

Example Calculation:

Scenario: $50,000 withdrawal, 25% federal rate, 5% state rate, no exemptions

Early Withdrawal Penalty: $50,000 × 10% = $5,000
Federal Income Tax: $50,000 × 25% = $12,500
State Income Tax: $50,000 × 5% = $2,500
Total Deductions: $5,000 + $12,500 + $2,500 = $20,000
Net Amount Received: $50,000 - $20,000 = $30,000 (60% of original)

References

This calculator is based on current federal tax regulations and IRS guidelines. For the most up-to-date information, consult these official sources:

401(k) Early Withdrawal Penalty Calculator - Calculate Tax & Penalties