Early 401(k) Hardship Withdrawal Impact

Model every deduction that hits a hardship withdrawal so you know how much cash lands in your bank account versus what you still owe at tax time.

Gross hardship distribution requested before taxes or penalties.
Determines whether the 10% early withdrawal penalty applies (under 59.5 years).
Highest federal income tax bracket that applies to the withdrawal.
Add your state, city, and local income tax percentages together.
Leave blank to apply the typical 20% federal withholding; override for hardship exceptions.

For education only — consult a tax professional before withdrawing retirement funds.

Examples

  • $25,000 withdrawal at age 43 with 24% federal, 5% state, default 20% withholding ⇒ Net cash $17,500.00; penalty $2,500.00; reserve $2,250.00.
  • $18,000 withdrawal at age 60 with 22% federal, 0% state, 15% withholding ⇒ Net cash $15,300.00; penalty $0.00; reserve $1,260.00.

FAQ

How does the calculator handle the 10% early withdrawal penalty?

If the age entered is below 59.5 years the tool automatically subtracts a 10% penalty from the distribution before displaying the net cash amount.

What happens when my combined tax rate is lower than the withholding percentage?

When withholding exceeds the modeled tax bill the output calls out the refund you may receive at filing so you understand future cash inflows.

Can I reflect state-level penalties or repayment plans?

Add any state-level penalties to the state and local rate field, and run repayment or rebuilding scenarios separately with our loan or savings planners.

Additional Information

  • Withdrawal amount is interpreted as the gross hardship distribution before any taxes or penalties.
  • Penalty applies when age is under 59.5 years unless an IRS exception applies; the tool highlights it separately.
  • If mandatory withholding is omitted the calculator assumes 20%, matching the standard federal hardship distribution rate.
  • Combined tax percentage simply adds federal and state marginal rates to approximate what you owe at filing.

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