401(k) Withdrawal Tax Calculator: Federal Tax and the 20% Withholding
The 20% your plan withholds is a down payment, not the tax. Your real federal tax depends on your bracket once the withdrawal is added to your other income — it can be less than 20% or more. (IRS Topic 413)
Where the 2026 brackets start, on taxable income after deductions (Rev. Proc. 2025-32):
| Bracket | Single | Married filing jointly |
|---|---|---|
| 12% | $12,400 | $24,800 |
| 22% | $50,400 | $100,800 |
| 24% | $105,700 | $211,400 |
| 32% | $201,775 | $403,550 |
If withholding falls short, you owe the rest in April; if it's too much, you get a refund.
IRA Withdrawal Calculator: Gross Up to the Amount You Need
To end up with a set amount, you have to withdraw more. Someone who needs $20,000 in hand, pays 22% federal tax at the margin and 5% state, needs to withdraw about $27,400. Switch the calculator to "End up with an amount" and it finds the exact figure, including any penalty.
IRAs withhold 10% by default, which is often too little for people in the 22% bracket or above (IRS Publication 505). Under 59½? See whether an exception removes the penalty on the early withdrawal penalty calculator.
Our take: spread big withdrawals across tax years
A single large withdrawal can jump you two brackets. Taking it in two pieces, in December and January, often saves real money. If you left your job at 55 or later, the Rule of 55 may waive the penalty, and the retirement tax calculator shows your whole-year picture.