Does this handle Roth accounts?

Not precisely. This tool assumes a traditional pre-tax account where withdrawals are taxable. Roth contributions and qualified distributions have different tax rules, so treat these results as a rough guide only.

Are all early withdrawals automatically penalized?

No. The calculator applies a simple 10% penalty when age is under 59½, but in reality many exceptions exist (certain medical expenses, first-time home purchases, etc.). Consult IRS rules or a tax professional for your specific case.

Does this show how early withdrawal affects my future balance?

Indirectly. You can compare future value projections with and without an assumed withdrawal, but the calculator does not explicitly model multiple withdrawals or revised contribution patterns.

How accurate are the tax estimates?

They’re approximate. Taxes are based on your marginal rate alone and do not reflect brackets, state taxes, or other income. Use them as a ballpark, then refine with tax software or a professional.

finance calculator

Updated IRA / 401k / 403b Calculator

Project retirement account growth with ongoing contributions and estimate taxes/penalties on an early withdrawal.

Results

Future value: $3,599,796
Early withdrawal penalty: $2,000
Estimated taxes on withdrawal: $4,400
Net withdrawal after penalty/tax: $13,600

How to use this calculator

Enter your current IRA/401(k)/403(b) balance, monthly contribution amount, expected annual return, and years until you want to model growth.
Optionally, enter your current age, a hypothetical withdrawal amount, and marginal tax rate.
We project the future value of the account at the end of the growth period.
If applicable, we calculate the 10% early withdrawal penalty and estimated taxes on the withdrawal.
Review both the projected balance and the net amount you would keep from an early withdrawal after penalties and taxes.

Inputs explained

Current balance: Your existing IRA, 401(k), or 403(b) balance today. You can combine multiple accounts if they share similar tax treatment.
Monthly contribution: The amount you plan to contribute to the account each month going forward. Include employee and employer contributions if you want a total picture.
Annual return (%): Your assumed average annual investment return before taxes and fees (for example, 5–7% for a diversified stock-heavy portfolio).
Years to grow: How many years you plan to leave the money invested before evaluating your balance or considering an early withdrawal.
Current age: Your current age. We use this to determine whether an early withdrawal would be subject to the 10% penalty (applies if under 59½ and no exception).
Withdrawal amount (optional): The amount you might withdraw from the account. If you leave this blank or zero, we only show the projected future value.
Marginal tax rate (%): Your estimated marginal income tax rate, used to approximate taxes on withdrawals from a traditional pre-tax account.

How it works

We compound your current balance plus monthly contributions at the assumed annual return, converted to a monthly growth rate.

Future value shows the projected account value after the chosen number of years, assuming steady contributions and returns.

If you enter a withdrawal amount and your age is under 59½, we apply a 10% early distribution penalty to that withdrawal amount.

We also estimate income taxes on the withdrawal at your entered marginal tax rate, assuming a traditional pre-tax account.

Net withdrawal shows how much you might actually receive after subtracting both the penalty (if any) and estimated taxes.

Formula

Future value uses monthly compounding:\n\nMonthly rate r = (1 + Annual return)^(1/12) − 1\nFuture value = (Current balance × (1 + r)^(12 × years)) + contribution stream\n\nEarly withdrawal penalty (if age < 59½) = Withdrawal amount × 10%\nEstimated taxes = Withdrawal amount × (Marginal tax rate ÷ 100)\nNet withdrawal = Withdrawal amount − Penalty − Taxes

When to use it

Seeing how much your IRA/401(k)/403(b) might grow if you keep contributing for a certain number of years.
Estimating the true cost of tapping retirement accounts early to cover emergencies, home purchases, or other needs.
Comparing leaving money invested versus withdrawing it and paying taxes/penalties.
Discussing trade-offs with a spouse or advisor when considering early access to retirement funds.
Illustrating the impact of early withdrawals on long-term retirement readiness.

Tips & cautions

Use conservative return assumptions; markets are volatile and past performance doesn’t guarantee future results.
Avoid early withdrawals when possible; combining penalties, taxes, and lost compounding can significantly reduce future retirement funds.
Remember that some situations (first-time home purchases, certain education or medical expenses) may qualify for penalty exceptions—this simple calculator does not model those.
If you contribute to both traditional and Roth accounts, consider modeling them separately since tax treatment differs.
Revisit your projections periodically as your balance, contributions, age, and tax situation change.
Does not enforce IRS annual contribution limits or catch-up contributions.
Does not differentiate between traditional vs Roth accounts or model employer matching rules in detail.
Assumes a fixed average annual return and contribution schedule with monthly compounding; real returns and contributions may vary.
Applies a flat 10% penalty and single marginal tax rate; actual tax and penalty outcomes depend on your full tax situation and any applicable exceptions.
Does not factor in required minimum distributions (RMDs), state taxes, or future tax law changes.

Worked examples

Growing a $250,000 401(k) with $6,000/month contributions for 10 years at 6%

Enter current balance = $250,000, monthly contribution = $6,000, annual return = 6%, years to grow = 10.
The calculator projects the future value with monthly compounding and contributions.
Interpretation: see how continuing to contribute meaningfully changes your retirement balance versus stopping contributions.

Early withdrawal at age 50 from a traditional IRA

Current age = 50, withdrawal amount = $20,000, marginal tax rate = 22%.
Penalty = $20,000 × 10% = $2,000.
Taxes ≈ $20,000 × 22% = $4,400.
Net withdrawal ≈ $20,000 − $2,000 − $4,400 = $13,600.
Interpretation: you lose about $6,400 to taxes and penalties, not counting lost future growth.

Waiting until after 59½

If you model the same $20,000 withdrawal at age 60 with the same tax rate, the 10% penalty drops to $0.
You still owe estimated taxes, but more of the withdrawal stays in your pocket.
Interpretation: this highlights why waiting to access pre-tax retirement accounts can reduce penalty costs.

Deep dive

Project IRA, 401(k), or 403(b) growth with ongoing contributions and estimate penalties and taxes if you tap the account early before age 59½.

Enter balance, contributions, return, years, age, and a withdrawal amount to see future value and how much of an early withdrawal you might actually keep.

Use this updated retirement account calculator to weigh the trade-offs between long-term growth and short-term access to pre-tax funds.

FAQs

Does this handle Roth accounts?: Not precisely. This tool assumes a traditional pre-tax account where withdrawals are taxable. Roth contributions and qualified distributions have different tax rules, so treat these results as a rough guide only.
Are all early withdrawals automatically penalized?: No. The calculator applies a simple 10% penalty when age is under 59½, but in reality many exceptions exist (certain medical expenses, first-time home purchases, etc.). Consult IRS rules or a tax professional for your specific case.
Does this show how early withdrawal affects my future balance?: Indirectly. You can compare future value projections with and without an assumed withdrawal, but the calculator does not explicitly model multiple withdrawals or revised contribution patterns.
How accurate are the tax estimates?: They’re approximate. Taxes are based on your marginal rate alone and do not reflect brackets, state taxes, or other income. Use them as a ballpark, then refine with tax software or a professional.

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This updated IRA/401(k)/403(b) calculator is for educational purposes only. It simplifies contribution limits, tax rules, penalties, and market behavior and should not be relied on as tax, legal, or investment advice. Always consult IRS guidance and a qualified professional before making contributions, withdrawals, or major changes to your retirement strategy.