What is a 401k early withdrawal calculator?

This 401k Early Withdrawal Calculator will help you compare the consequences of taking a lump-sum distribution from your 401 (k) – or even your IRA – versus rolling it over to a tax-deferred account. Make a smart decision. Use the calculator to let the math prove which is the optimum choice. Is Your 401k A Security Blanket?

What is a 401(k) early withdrawal penalty?

If you make an early withdrawal from a traditional 401 (k) retirement plan, you must pay a 10% penalty on the withdrawal. There are some exceptions to this rule, such as certain health expenses and life events. Learn more below about how to calculate your specific 401 (k) early withdrawal penalty.

How can I avoid a 401(k) withdrawal penalty?

This avoids the 10% penalty and taxes that would be charged on a withdrawal. Another possible option is to make sure your withdrawal meets one of the hardship withdrawal requirements. Instead of tapping into your 401 (k), you may also be able to use your individual retirement account (IRA) to avoid the withdrawal penalty.