401(k) Withdrawal Tax Calculator Instructions
This calculator calculates the tax liability and possible early withdrawal penalty for a one-time withdrawal from a 401(k) account. Based on IRS, withdrawing from a 401(k) account before age 59 1/2 will incur 401(k) early withdrawal penalty. The penalty is 10% of the withdrawal amount. The calculator outputs the net withdrawal amount after tax and penalty.
In general, It’s important to consider early withdrawal penalty and RMD (Required Minimum Distribution) for a 401(k) account. Both can incur substantial tax liabilities and even penalties if not executed properly.