Company Marketcap

401(k) Spend It or Save It Calculator

Your old 401(k)

$

Pre-tax money only. Roth and after-tax amounts are taxed differently.

Enter 59.5 if you are 59½.

%
$

Wages and other taxable income, before the standard deduction.

%
%
%

Federal plus state, on later withdrawals.

More options
%
%

Fund expenses plus any account or advisory fee. Compare your plan's fee disclosure with the IRA you would use.

Spend it or save it

Cash kept after all taxes

–

Rolled over, at retirement

–

Taxes if you cash out

–

Share lost to tax now

–

If you cash out

Distribution–
Mandatory 20% federal withholding–
Check you receive–
Federal income tax–
10% additional tax–
State income tax–
Federal tax still owed at filing–

Compare your three choices

ChoiceTax nowCash nowValue at retirementAfter tax at retirement

A direct rollover moves the money straight to an IRA or a new employer's plan, so nothing is withheld or taxed. Leaving it in the old plan keeps the age 55 rule: money taken from that plan after you leave in or after the year you turn 55 (50 for qualified public safety employees) avoids the 10% additional tax. Once rolled into an IRA, withdrawals before 59½ generally face the 10% tax.

The 60-day indirect rollover trap

If the plan pays you instead of the new account, it must withhold 20%. You then have 60 days to deposit the full balance, including the withheld part from your own money, to avoid tax on it.

Check you receive–
Extra cash you must add within 60 days–
Tax if you deposit only the check–
Withholding credited back when you file–

Growth until retirement

AgeRolled over to an IRALeft in the plan

Results are estimates for educational purposes and are not financial, tax or legal advice.

See what cashing out an old 401(k) costs in withholding, income tax and the 10% additional tax, and compare it with rolling it over or leaving it in the plan until you retire. Next, open the 401k calculator online and enter your own details to see an estimate in seconds.