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401k Early Withdrawal Calculator

Withdrawals before retirement

Visualize the impact on your long-term retirement savings of withdrawing money from your retirement accounts prior to retirement if you are considering withdrawing money now.

Withdrawal amount after taxes and fees

$ 15,000

Projected account loss with withdrawal

$ 63,443

  • Balance at retirement with no withdrawal: $ 1,268,868
  • Balance at retirement with withdrawal: $ 1,205,424
Effect of early withdrawal on retirement savings over time
55 years
70 years
8 %
10 %
5 %
This calculator is for information purposes only and is not intended to provide investment, legal, tax or accounting advice, nor is it intended to indicate the performance, availability or applicability of any product or service. The accuracy of this and its applicability to your circumstances is not guaranteed. You may wish to consult an appropriate and qualified advisor about your unique situation. This calculator is provided by EVERFI. EVERFI is not affiliated with this site's sponsor, owner or any affiliate thereof. You should always consult with your financial planner, attorney and/or tax advisor as needed. Results and analyses are based exclusively on information provided by you and no assumptions are made as to your particular situation. Projection is hypothetical in nature and not predications or guarantees. All investments carry a degree of risk and past performance is not a guarantee of future results. Asset allocation and diversification do not ensure a profit and do not protect against loss in declining markets.

401(k) early withdrawal calculator

If you're facing a financial emergency, changing jobs, or looking to make a major investment, cashing out your 401(k) may seem like a great idea. While this option can be a quick way to secure the funds you want, it has drawbacks. Depending on your specific situation, you could face a 10% early 401(k) withdrawal penalty, increase your tax bill, and prolong your retirement plans.

Before you request funds from your retirement plan, it's important to understand how much that decision might cost. The Empower 401(k) early withdrawal calculator estimates how much you could receive after calculating penalties and taxes. Keep reading to learn more about how this calculator works and the information it provides.

The information provided on this page is for educational purposes only and isn't intended as investment or tax advice.

Learn more: What is a 401(k)?

How the 401(k) early withdrawal calculator works

The Empower 401(k) early withdrawal calculator is easy to use and understand. You only need to enter several key factors, including:

  • Current and estimated retirement age

  • Withdrawal amount

  • Current 401(k) balance

  • Anticipated annual rate of return

  • Federal income tax bracket

  • State tax bracket

  • Retirement plan type (traditional or Roth)

Once you input this information, the 401(k) early withdrawal calculator automatically calculates your estimated penalties and taxes owed. It also shows the estimated net amount you can receive.

Read more: 401(k) withdrawal rules

Key factors that affect your 401(k) withdrawal

Let's look at the top factors affecting your 401(k) withdrawal.

401(k) early withdrawal penalty

Unless you're aged 59½ or older at the time of your request, the IRS assesses a 10% tax penalty for early 401(k) withdrawals. There are a few exceptions to this rule, such as withdrawing funds to pay unreimbursed medical bills.

Early 401(k) withdrawal tax impact

The federal government considers funds from a 401(k) plan as ordinary income, meaning you must pay taxes on any pre-tax funds you withdraw. More importantly, adding any early withdrawal funds to your regular income could push you into a higher tax bracket, leading to a higher tax bill.

Compound growth

Another crucial factor to consider before withdrawing from your 401(k) is the impact on your retirement savings. For example, if you withdraw $20,000 early, you'll not only have $20,000 less for your retirement, but you'll also lose the power of compounding.  With the potential of compounding, not only would your investments have the potential to grow, any earnings could also produce earnings.

Take the next step

Don't make any decisions about your 401(k) without knowing the facts. Try our easy-to-use Empower 401(k) early withdrawal calculator today to determine your estimated net return.  

Learn more: Get personalized retirement advice today.

Additional resources

FAQs

What are the penalties for withdrawing from a 401(k) early?

If you choose to withdraw any portion of your 401(k) before you reach 59½, you'll incur a 10% early withdrawal penalty unless an exception applies.

Can I withdraw money from my 401(k) without paying taxes?

You can only withdraw money from a 401(k) without paying federal taxes if it's a qualifying Roth retirement plan you contributed to with post-tax dollars.

How to use Empower's 401(k) early withdrawal calculator?

Empower's 401(k) early withdrawal calculator is easy to use. Simply, enter the required information, including your current and anticipated retirement age, the amount you plan to withdraw, and your federal and state tax brackets. The calculator does the rest by providing the estimated net disbursement you can expect.