401 Withdrawal Tax Calculator

Formatting only. This does not change the calculation.
Early-withdrawal mode only.
Used only by the bracket basis.
Used only by the bracket basis: wages and other income taxed at ordinary rates, before the withdrawal.
Amount you keep
17,000.00
401(k) Calculator
Federal income tax on the withdrawal
5,500.00
Effective federal rate on the withdrawal
22.00 %
Marginal federal bracket the withdrawal reaches
22.00 %
State income tax on the withdrawal
0.00
10% additional tax under 72(t)
2,500.00
20% mandatory withholding
5,000.00
Worked out from IRS Notice 2025-67, 2026 amounts relating to retirement plans and IRAs and 4 other sources.
A designated Roth distribution that is qualified is not taxed; set the tax rates to zero in that case. Money withdrawn also stops compounding, which is usually the larger cost.
An estimate based on the assumptions you enter. Contribution limits, the taxation of a distribution and the terms of a plan loan depend on your plan document, your filing position and your state — confirm with your plan administrator and a tax adviser before acting.

How this is worked out

6 steps
  1. Taxable income without the withdrawal = 70000 - 16100 standard deduction = 53900, tax 6570.
  2. With the 25000 withdrawal it is 78900, tax 12070, so the withdrawal itself costs 5500 - an effective 22% against a 22% top bracket.
  3. State income tax = 0% x 25000 = 0.
  4. IRC 72(t) additional tax = 10% x 25000 = 2500 because the participant is under 59 1/2 and no exception applies.
  5. Amount kept = 25000 - 5500 - 0 - 2500 = 17000.
  6. IRC 3405(c) requires the plan to withhold 20% = 5000 at source; that is a prepayment of the tax above, not an extra cost.

Results are general information, not financial, tax, legal, medical or engineering advice.