Calculator
401(k) early withdrawal calculator
Enter what you need in hand. The calculator grosses it up for federal and state income tax and the 10% additional tax, then shows what the plan pays out and what you still owe at tax time.
Withdraw this much$15,873to keep $10,000 after federal, state and early-withdrawal taxes (37%)
| Withdrawal | $15,873 |
|---|---|
| Less federal income tax at 22% | −$3,492 |
| Less state income tax at 5% | −$794 |
| Less 10% additional tax (early distribution) | −$1,587 |
| Left to spend | $10,000 |
| Paid out now (after the default 10% withholding) | $14,286 |
| Still owed when you file (federal tax + 10% − withholding) | $3,492 |
| The same $15,873 left invested to 67 at 6% | $76,545 |
Pre-tax money only: a Roth 401(k) hardship withdrawal is taxed only on its earnings share. A hardship withdrawal cannot be repaid to the plan or rolled over. Taxes use one marginal rate; a large withdrawal can push part of it into a higher bracket.
The link keeps your inputs, so you can save or share this scenario.
How much a 401(k) hardship withdrawal costs
A hardship withdrawal from pre-tax 401(k) money costs your income tax rate plus 10% if you are under 59½, so the plan must pay out more than you need. The IRS counts a hardship distribution as necessary only up to the amount of the need, but that amount may include the taxes the distribution causes[hardship]. Our example, $10,000 needed at 40:
| Item | Grossed up | Withdraw only $10,000 |
|---|---|---|
| Withdrawal | $15,873 | $10,000 |
| Federal income tax (22%) | −$3,492 | −$2,200 |
| State income tax (5%) | −$794 | −$500 |
| 10% additional tax | −$1,587 | −$1,000 |
| Left to spend | $10,000 | $6,300 |
Taking out only the $10,000 leaves $6,300 after taxes, $3,700 short. If you left the job in or after the year you turned 55, the 10% falls away: at 56 the same $10,000 needs only $13,699.
401k withdrawal penalty and withholding: what is taken at payout
The plan withholds 10% federal tax by default, not the full tax. A hardship distribution cannot be rolled over[hardship], so it is a nonperiodic payment, and Form W-4R sets a 10% default withholding rate that you can raise (or lower to zero inside the United States)[w4r]. The 10% additional tax is not withheld at all: it is paid with your return on Form 5329. In the example, the plan sends $14,286 and you still owe about $3,492 in federal tax and penalty when you file, plus any state tax.
| You need | 22% federal + 5% state | 12% federal, no state tax |
|---|---|---|
| $5,000 | $7,937 | $6,410 |
| $10,000 | $15,873 | $12,821 |
| $20,000 | $31,746 | $25,641 |
| $30,000 | $47,619 | $38,462 |
| $50,000 | $79,365 | $64,103 |
Hardship withdrawal 401k rules: the 7 IRS reasons
A 401(k) plan may, but does not have to, allow hardship withdrawals; your plan document decides. Under the IRS safe harbor, these needs automatically count as an immediate and heavy financial need[hardshipfaq]:
- Medical care for you, your spouse, dependents or primary beneficiary.
- Costs directly related to buying your principal residence (not mortgage payments).
- Tuition, fees and room and board for the next 12 months of college.
- Payments to prevent eviction from, or foreclosure on, your principal residence.
- Funeral or burial expenses.
- Repair of damage to your principal residence that would qualify as a casualty loss.
- Expenses and lost income from a federally declared disaster where you live or work.
Since 2019 you no longer have to take a plan loan first, and the old six-month ban on contributing after a hardship withdrawal is gone[hardship]. The plan can rely on your written statement that you cannot cover the need from other resources. Withdrawals come from elective deferrals and, if the plan allows, employer contributions[hardship].
Exceptions to the 10% additional tax
A hardship is not an exception by itself: most hardship withdrawals before 59½ still pay the 10%. These IRS exceptions apply to 401(k) plans and are built into the calculator[earlydist]:
| Exception | Covers |
|---|---|
| Separation from service in or after the year you turn 55 | The whole withdrawal from that employer’s plan |
| Total and permanent disability, terminal illness | The whole withdrawal |
| Emergency personal expense | Up to $1,000, once a calendar year |
| Birth or adoption | Up to $5,000 per child |
| Federally declared disaster | Up to $22,000 |
| Unreimbursed medical expenses | The part above 7.5% of AGI |
Income tax still applies in every case. The age-55 rule only works for the plan of the employer you left; it does not follow the money into an IRA. For a full picture of an early exit from work, use the early retirement calculator; to see what the money would have grown to, run the 401(k) calculator.
Alternatives to check first
- A 401(k) loan. If the plan offers one, a loan is not taxed and is repaid to your own account; a hardship withdrawal is gone for good.
- The $1,000 emergency withdrawal. Free of the 10% additional tax once a calendar year, up to $1,000[earlydist].
- Roth contributions. Roth 401(k) money is taxed only on its earnings share before it is qualified; regular Roth IRA contributions can be withdrawn any time without tax.
- The full cost. $15,873 taken at 40 would be about $76,545 at 67 at a 6% return.
Common mistakes
- Asking for exactly the bill amount. Taxes come out of it; request the grossed-up amount.
- Treating the 10% withholding as the whole tax. In the 22% bracket under 59½ the real cost is 32% or more before state tax.
- Expecting to repay it. Hardship withdrawals cannot be paid back or rolled over.
- Rolling to an IRA before using the rule of 55. The age-55 exception is lost once the money is in an IRA.
RelatedRetirement-account withdrawals after 73 are covered by the RMD calculator; the current plan limits are on the 401(k) contribution limit page.
Frequently asked questions
How much tax do I pay on a 401(k) hardship withdrawal?
Your normal income tax rate on the amount withdrawn, plus a 10% additional tax if you are under 59½ and no exception applies. The plan withholds only 10% federal tax by default; the rest is settled on your tax return.
What qualifies for a 401(k) hardship withdrawal?
Under the IRS safe harbor: medical bills, buying a principal residence, the next 12 months of college costs, preventing eviction or foreclosure, funeral expenses, casualty repairs to your home and federally declared disaster losses. Your plan must allow hardship withdrawals.
What is the 401k withdrawal penalty?
A 10% additional tax on the taxable amount withdrawn before 59½, reported on Form 5329, unless an exception such as leaving your job in or after the year you turn 55, disability, or the $1,000 emergency withdrawal applies.
Can I pay back a 401(k) hardship withdrawal?
No. A hardship distribution cannot be repaid to the plan or rolled over to an IRA or another plan. A plan loan can be repaid.
Do I have to take a 401(k) loan before a hardship withdrawal?
No. Since 2019 the IRS no longer requires you to take available plan loans first, and you can keep contributing right after the withdrawal.