Net Distribution Calculator
Calculate the net amount you receive from a retirement or investment account distribution after tax withholdings and early withdrawal penalties.
Results
What is it?
The Net Distribution Calculator shows what you actually receive after taking a distribution from a tax-deferred retirement account (IRA, 401k). It accounts for mandatory federal withholding, state withholding, and the 10% early withdrawal penalty for distributions taken before age 59½.
How to use
Enter the gross distribution amount, the federal withholding percentage (typically 20% for lump-sum 401k distributions), your state's withholding rate, and check the early penalty box if you are under 59½.
Example scenario
A $50,000 early distribution with 20% federal and 5% state withholding costs $10,000 in federal tax, $2,500 in state tax, plus a $5,000 early penalty — leaving only $32,500 in your pocket (35% gone).
Pro tip
Before taking an early distribution, consider a 401(k) loan, Roth IRA contribution withdrawal (penalty-free), or the Rule of 55 (penalty-free 401k access after leaving a job at 55+). The 10% penalty is on top of regular income tax.