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401 Withdrawal Calculator

401(k) Withdrawal Calculator works out Sustainable withdrawal each period and Sustainable withdrawal a year from Balance available, Expected annual return and Annual inflation. The default figures on this page give amount you keep of 34,000.00; change any entry and the result, the working and the sources update together.

Amount you keep
34,000.00
Retirement Withdrawal Calculator
Total withdrawn
50,000.00
Balance left at the end
450,000.00
Income tax on the withdrawal
11,000.00
10% additional tax
5,000.00
Total tax and penalty
16,000.00
Withheld by the plan
10,000.00
Method used
Ordinary income tax plus the 10% additional tax of IRC 72(t)(1)
Worked out from IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv) and 4 other sources.
The marginal rates you enter are applied flat to the whole distribution. A large withdrawal can push you into a higher bracket and can change credits, Medicare premiums and the taxation of Social Security, none of which is modelled here.
Whether a distribution is permitted, whether any exception to the 10% additional tax applies, and what a series of substantially equal periodic payments must look like to avoid the recapture tax of IRC 72(t)(4) are tax determinations this tool does not make. The withdrawal projections assume a constant rate of return, which no real portfolio delivers. Confirm your position with a qualified tax adviser before acting.

Your figures

Updates as you type
For a 72(t) series this is the account balance determined under section 3.02(d) of Notice 2022-6.
An effective annual rate, applied to whatever is left in the account.
Set above zero to hold the withdrawal constant in real terms; the cash amount then rises each period.
Used when working out how much you can withdraw.
Used when working out how long the money lasts. This is the amount per withdrawal, not per year.
Ages below 59.5 attract the 10% additional tax on an early distribution.
Only used with the Joint and Last Survivor Table.
Notice 2022-6 caps this at the greater of 5% and 120% of the federal mid-term rate.
Optional. The section 1274(d) rate for either of the two months before payments begin; supply it to see the ceiling above 5%.
The present value of an annuity of 1 per year at your age, derived from the mortality rates of Treas. Reg. 1.401(a)(9)-9(e) at your chosen interest rate. Required only for the fixed annuitization method.
The taxable distribution, before tax and withholding.
Defaults to the 20% mandatory withholding on an eligible rollover distribution from an employer plan.

How this is worked out

4 steps
  1. Income tax = 50000 x (22% + 0%) = 11000
  2. Additional tax under IRC 72(t)(1) = 10% x 50000 = 5000
  3. Amount kept = 50000 - 16000 = 34000
  4. The plan withholds 20% = 10000 against that liability

Figures from IRS Uniform Lifetime Table (Notice 2022-6), 2022 edition and IRS life expectancy tables, 2022 edition, checked 31 August 2026. Its 5 worked examples are re-run on every release, last on 15 September 2026. What changed · how reference data is kept current

Sources and references

5 sources
IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv)
2022-2 I.R.B. 460 · Section 3.01 defines the required minimum distribution, fixed amortization and fixed annuitization methods; section 3.02(a) lists the permitted life expectancy tables; section 3.02(c) caps the interest rate at the greater of 5% and 120% of the federal mid-term rate; Appendix A is the Uniform Lifetime Table used here.
Treas. Reg. 1.401(a)(9)-9, Life expectancy and distribution period tables (T.D. 9930)
85 FR 72472
IRC 72(t)(1) - 10% additional tax on an early distribution from a qualified retirement plan
The additional tax is 10% of the part of the distribution included in income, unless an exception applies.
IRC 3405(c)(1) - 20% mandatory withholding on an eligible rollover distribution
A plan distribution eligible for rollover but paid to the participant is subject to 20% withholding.
Ordinary annuity relations: W = B r / (1 - (1+r)^-n) and n = -ln(1 - r B / W) / ln(1+r)
The standard present-value-of-an-annuity identity, solved for the payment and for the number of payments respectively. Implemented through core/finance.ts pmt and nper.

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Save it, change one figure, then compare the two

The calculation stays free. Save this scenario, adjust one assumption, save that too, and put them side by side to see exactly what the change costs you. A free account keeps 5 scenarios and 2 comparisons; Personal makes both unlimited and adds exports and private links. Nothing is saved unless you press Save.

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What the 401(k) Withdrawal Calculator calculates

Works out the level withdrawal a retirement pot can support, how many years a pot lasts at a chosen withdrawal rate, a section 72(t) series of substantially equal periodic payments under any of the three IRS methods, and the income tax, 10% additional tax and withholding on an early distribution.

How to use this 401(k) Withdrawal Calculator

Enter Balance available, Expected annual return, Annual inflation and Withdrawal frequency. Sustainable withdrawal each period updates as you type. Change one figure at a time to see what drives the result.

How the result is worked out

Open “How this is worked out” beside the result for the step-by-step calculation behind Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts.

The method follows IRS Notice 2022-6, Substantially equal periodic payments under section 72(t)(2)(A)(iv), Treas. Reg. 1.401(a)(9)-9, Life expectancy and distribution period tables (T.D. 9930), IRC 72(t)(1) - 10% additional tax on an early distribution from a qualified retirement plan, IRC 3405(c)(1) - 20% mandatory withholding on an eligible rollover distribution and Ordinary annuity relations: W = B r / (1 - (1+r)^-n) and n = -ln(1 - r B / W) / ln(1+r).

What you can compare

Change one input at a time to see how it affects Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts. The inputs you can vary are Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken and Years the money must last.

Understanding Sustainable withdrawal each period, Sustainable withdrawal a year and Years the money lasts

Whether a distribution is permitted, whether any exception to the 10% additional tax applies, and what a series of substantially equal periodic payments must look like to avoid the recapture tax of IRC 72(t)(4) are tax determinations this tool does not make. The withdrawal projections assume a constant rate of return, which no real portfolio delivers. Confirm your position with a qualified tax adviser before acting.

Results are general information, not financial, tax, legal, medical or engineering advice. Check any decision that matters with a qualified professional.

Embed this calculator on your website

Copy this code into any page. The calculator appears with the figures currently entered, sizes itself to fit, and a small credit line links back here. Free, no account, no ads inside it, no tracking of your readers. Set your own figures and fixed fields; Personal removes the credit line, sets your colour and shows you which sites use it.

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Frequently asked questions

How much tax will I pay on my 401(k) withdrawal?

On the figures this page opens with — balance available 500,000, expected annual return 5%, annual inflation 0% and withdrawal each period 30,000 — the amount you keep is 34,000. No single number fits everyone: change any figure above and the answer updates as you type, with each step of the arithmetic beside it.

How to avoid 20% tax on 401k withdrawal?

Works out the level withdrawal a retirement pot can support, how many years a pot lasts at a chosen withdrawal rate, a section 72(t) series of substantially equal periodic payments under any of the three IRS methods. Open “How this is worked out” beside the result to see each step for your own figures.

What is the smartest way to withdraw a 401k?

It needs Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken and Years the money must last. Nothing else is required, and the figures stay in your browser.

What information do I need for the 401(k) Withdrawal Calculator?

You need Balance available, Expected annual return, Annual inflation, Withdrawal frequency, Withdrawals are taken, Years the money must last, Withdrawal each period and Your age now. The page opens with default figures that give amount you keep of 34,000.00, so you can see the scale before entering your own.

What does this 401(k) Withdrawal Calculator show?

It shows Sustainable withdrawal each period, Sustainable withdrawal a year, Years the money lasts, Months the money lasts, Age when the money runs out, Total withdrawn, Investment growth over the period and Balance left at the end, with the working and any warnings for your entries.

Can I check how the 401(k) Withdrawal Calculator result was calculated?

Yes. The “How this is worked out” section shows the calculation steps, and the sources section identifies the references used for the method.

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