Early Retirement Withdrawal Calculator
Withdrawing from a retirement account before 59½ means income tax plus a 10% penalty. This calculator shows the true cost — and how much of your money survives.
How this calculator works
The withdrawal is added to your other income and taxed at your marginal rate using the 2026 brackets, then a flat 10% penalty applies on top. The total is what the withdrawal costs; the remainder is what actually lands in your bank account. Many people are surprised the real cost of an early withdrawal is 30–45% of the money, not 10%.
Frequently asked questions
When does the 10% penalty not apply?
The penalty is waived for disability, death, unreimbursed medical expenses over 7.5% of AGI, a first-time home purchase (up to $10,000 of IRA money), substantially equal periodic payments (72(t)), and after separation from service at age 55 for a 401(k). The income tax always applies — only the penalty is waived, and rules differ slightly between IRAs and 401(k)s.
Is a 401(k) loan better than an early withdrawal?
Usually yes: a 401(k) loan avoids both the income tax and the penalty, and you pay the interest back to yourself. The risks are that the balance is due within 60 days if you leave the job, and defaulted loans become taxable. Only borrow if you can be sure of the job.
What about a Roth IRA?
Contributions to a Roth IRA can be withdrawn anytime tax- and penalty-free; only earnings withdrawn before 59½ (and before the 5-year rule) are taxed and penalized. If you have contributed to a Roth, that money is your cheapest emergency fund — better than raiding a traditional 401(k).
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.