US Retirement Withdrawal Calculator

A withdrawal from a traditional 401(k) or IRA is taxed as ordinary income at your marginal rate, on top of your other income for the year. If you are under age 59½, a 10% additional tax usually applies as well, unless an exception is met. This calculator stacks the withdrawal on your other income and shows the income tax and any penalty separately.

If you take money out of a traditional 401(k) or IRA before age 59½, the IRS generally charges a 10% additional tax on the amount withdrawn, on top of the ordinary income tax. This is designed to discourage tapping retirement savings early. Certain exceptions remove the penalty, but the income tax still applies.

The 10% early-withdrawal penalty generally stops applying once you reach age 59½. After that, withdrawals from a traditional 401(k) or IRA are still subject to ordinary income tax, but no penalty. Select '59½ or older' in the calculator to see the tax without the penalty.

Yes. Common exceptions include total and permanent disability, certain medical expenses, a series of substantially equal periodic payments (72(t)), a first-home purchase from an IRA (up to $10,000), qualified education expenses from an IRA, birth or adoption, and separation from service at 55+ for a 401(k). The income tax still applies even when the penalty is waived.

Qualified Roth withdrawals are completely tax- and penalty-free — you already paid tax on the contributions. A withdrawal is 'qualified' if the account has been open at least five years and you are 59½ or older (or meet another exception). Non-qualified Roth withdrawals can have tax and penalty on the earnings portion, which this calculator does not model.

Your withdrawal is added on top of your other taxable income, so it is taxed in whatever brackets remain above your existing income. A large withdrawal can push part of itself into a higher bracket. Entering your other income lets the calculator apply the correct marginal rates rather than assuming the withdrawal is taxed in isolation.

Often, yes — many US states tax retirement withdrawals, though some exempt them wholly or partly. This calculator estimates federal income tax and the federal penalty only. If you are still tax-resident in a US state, add its tax separately; Americans who have cleanly left a state may avoid state tax on the withdrawal.

For a US citizen resident in the UK, a withdrawal can be taxable in both countries, with the US/UK treaty and Foreign Tax Credit preventing double taxation. The treaty's pension articles affect where tax is due, and lump sums versus periodic payments can be treated differently. Cross-border retirement withdrawals are a specialist area, so get advice before taking a large distribution.

This calculator works for any traditional withdrawal amount, including a required minimum distribution. RMDs generally must begin at age 73 and are taxed as ordinary income but carry no early-withdrawal penalty (you are well past 59½). Enter your RMD amount and select '59½ or older' to estimate the tax.

A genuine 401(k) loan that you repay on schedule is not a taxable distribution. But if you leave your job or fail to repay, the outstanding balance can be treated as a distribution — taxable, and subject to the 10% penalty if you are under 59½. This calculator models an actual withdrawal, not a loan.

Plans often withhold a default 20% on 401(k) distributions, but that may be more or less than your actual tax. Use this calculator to estimate your true liability so you can plan for any balance due or refund. Under-withholding on a large withdrawal can also trigger estimated-tax underpayment penalties.

A Roth conversion is taxable as ordinary income on the converted amount, like a withdrawal, but it is not subject to the 10% early-withdrawal penalty if the money stays in the Roth. Conversions are a planning tool, especially in lower-income years. This calculator models a cash withdrawal; a conversion has similar income tax but no penalty.

Because the withdrawal is taxed (and possibly penalised), you receive less than the gross amount. Use the 'amount you keep' figure to work backwards: if you need a specific net sum, increase the gross until the net matches your target. For under-59½ traditional withdrawals, the combined tax and penalty can take a large bite.

Enter your total planned withdrawals for the year as a single figure. Because tax is based on annual income, several smaller withdrawals are taxed the same as one combined withdrawal of the same total. If you have both traditional and Roth withdrawals, run the calculator separately for each account type.

Keep the Form 1099-R your plan or custodian issues, which reports the distribution and any withholding, plus records of any after-tax basis in the account. For Roth accounts, keep evidence of contribution dates to prove the five-year rule. Good records ensure you are not taxed twice on amounts you already paid tax on.

It applies the 2025 ordinary income brackets and the 10% early-withdrawal penalty, stacking the withdrawal on your other income — so it is accurate for a typical traditional withdrawal. It does not model state tax, penalty exceptions, after-tax basis, non-qualified Roth earnings or cross-border treaty effects, so treat it as a planning estimate.

Sometimes, but the combined income tax plus 10% penalty makes early withdrawals expensive, and you also lose future tax-deferred growth. Alternatives — a 401(k) loan, a penalty exception, or a Roth conversion ladder — are often better. Run the numbers here first, and weigh the long-term cost before tapping retirement savings early.

The calculation runs entirely in your browser and nothing is stored unless you choose to download the branded PDF report, at which point you provide your name and email so we can send it. Phone and address are optional.

Yes. Enter your name and email (phone and address optional) and we generate a TaxStone-branded PDF of your withdrawal estimate to download instantly — handy for planning a distribution or sharing with your adviser.

Yes — especially for big distributions, early withdrawals, or anyone with US/UK exposure, where treaty treatment and timing can save real tax. Book a free 20-minute call with a TaxStone Enrolled Agent before you withdraw.