Use this calculator to estimate how much in taxes you could owe if you take a distribution before retirement from your qualified employer sponsored retirement plan (QRP) such as a 401k, 403b or governmental 457b.
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Early Distribution
Taking cash out of your 401(k) plan before age 59 ½ is considered an early distribution.*
Federal Income Tax Rate
Estimate your marginal Federal income tax rate (your tax bracket) based on your current earnings, including the amount of the cash withdrawal from your retirement plan.
State Income Tax Rate
Estimate your marginal state income tax rate (your tax bracket) based on your current earnings, including the amount of the cash withdrawal from your retirement plan.
55 or older
If you left your employer in or after the year in which you turned 55, you are not subject to the 10% additional tax.*
Rate of Return
The 10-year average rate of return for the S&P 500 Index was 13.84% annually as of July 2020. During the same period, the Dow Jones Industrial Average returned an average of 12.48% annually.
Source: Morningstar, Inc., August 3, 2020. Past performance is no guarantee of future results. You cannot invest directly in an index.
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- Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested
Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
*Distributions from your QRP are taxed as ordinary income and may be subject to an IRS 10% additional tax if taken prior to age 59 1/2. You avoid the IRS 10% additional tax, if you left your employer in the year you turned age 55 or older (age 50 for certain public safety employees). There are other exceptions to the IRS 10% additional tax for early distribution including: your death, being disabled, eligible medical expenses, taking substantially equal periodic payments (SEPP), qualified reservist distribution, birth or adoption expenses (up to $5,000), and involuntary IRS levies. Please visit IRS.gov for a complete list.
The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates - so these estimates should not be regarded as predictions, advice, or recommendations. This information does not constitute an application, offer or commitment by Wells Fargo & Company, or a representation of interest rates, investment performance or any other future performance. The accuracy of this calculator and its applicability to your circumstances is not guaranteed. You should obtain personal advice from qualified professionals. This information is provided for illustrative purposes only and is not intended to constitute legal, financial, or other advice. Wells Fargo Advisors and Wells Fargo & Company do not provide legal, accounting, or tax advice. Please consult your tax or legal advisors before taking any action that may have tax or legal consequences.
Retirement Professionals are registered representatives of and offer brokerage products through Wells Fargo Clearing Services, LLC (WFCS). Discussions with Retirement Professionals may lead to a referral to affiliates including Wells Fargo Bank, N.A. WFCS and its associates may receive a financial or other benefit for this referral. Wells Fargo Bank, N.A. is a banking affiliate of Wells Fargo & Company.
Information published by Wells Fargo Bank, N.A., Wells Fargo Advisors, or one of its affiliates as part of this website is published in the United States and is intended only for persons in the United States.
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