401k Calculator & Guide
Understand how taxes work when you move money from a 401(k) to another retirement account, including direct rollovers, 60-day rollovers, 20% withholding, Roth conversions and early-distribution taxes.
A properly completed rollover of an eligible 401(k) distribution generally is not currently taxable when the money remains within an eligible tax-deferred retirement arrangement.
An eligible distribution transferred directly to another eligible plan or IRA generally is not currently taxable.
Direct Rollover →A participant-paid eligible distribution can generally remain tax-deferred when the eligible amount is rolled over within 60 days.
Indirect Rollover →Taxable amounts that are not rolled over generally become taxable income for the year of distribution.
The destination matters. Traditional-to-traditional rollovers generally preserve tax deferral, while moving traditional money into a Roth account can create taxable income.
A qualifying rollover generally remains tax-deferred.
A qualifying rollover generally preserves tax deferral.
Untaxed traditional amounts generally become taxable income.
Untaxed amounts generally become taxable when distributed.
When an eligible taxable distribution from a retirement plan is paid to you rather than directly rolled over, federal law generally requires 20% withholding.
With a simplified 20% withholding example, $20,000 is withheld and $80,000 is paid to you.
You generally need to use other funds to replace the $20,000 withheld if you want the full $100,000 eligible distribution rolled over.
The 20% amount is federal income-tax withholding. Your actual tax liability depends on your overall tax situation. The IRS explains that the withheld amount is generally reported as taxes paid, while any taxable amount that is not rolled over can be included in income.
Estimate the amount received after withholding and the additional funds that could be needed to roll over the full gross distribution.
This calculator is an educational withholding illustration. It does not calculate your federal or state income-tax liability, determine rollover eligibility, account for every early-distribution exception, or replace professional tax advice.
If an eligible retirement-plan distribution is paid to you, you generally have 60 days from receipt to roll over the eligible amount.
The retirement plan pays the eligible distribution to you and generally withholds 20% of the taxable amount.
The 60-day period generally begins when you receive the distribution.
Deposit the eligible rollover amount into an eligible retirement plan or IRA within the applicable deadline.
The IRS can provide relief from the 60-day requirement in certain circumstances, including qualifying automatic waivers or other procedures. A missed deadline should not be assumed to qualify automatically.
A properly completed rollover generally is not treated as a taxable cash distribution. But a taxable amount that is not rolled over may be subject to the additional 10% tax if you are under age 59½, unless an exception applies.
A properly completed rollover generally does not trigger the 10% additional tax on the rolled-over amount.
A taxable amount not rolled over may be subject to the 10% additional tax if you are under 59½, unless an exception applies.
IRS rules provide exceptions to the additional tax. Your specific facts determine whether an exception applies.
A rollover from a traditional pre-tax 401(k) to a Roth IRA is generally a Roth conversion. The untaxed amount generally becomes taxable income in the year of the conversion.
Traditional pre-tax contributions and related untaxed earnings generally have not yet been included in taxable income.
Moving untaxed traditional retirement money into a Roth IRA generally makes the converted amount taxable.
The converted amount enters the Roth IRA, where future qualified distributions can receive Roth tax treatment.
A direct rollover can avoid the mandatory 20% withholding that would apply when an eligible taxable plan distribution is paid to you. That does not make a traditional 401(k)-to-Roth IRA conversion tax-free. The taxable conversion amount generally remains taxable.
Designated Roth 401(k) money is different from traditional pre-tax 401(k) money because contributions have already been included in income. Earnings can still have separate tax treatment.
Designated Roth account distributions can generally be rolled into a Roth IRA, subject to the applicable rollover rules.
Roth 401(k) Rollover →Compare the different tax timing of Roth and traditional contributions.
Compare Accounts →Learn how Roth 401(k) contributions interact with the overall employee elective-deferral limit.
Roth Limits →A 401(k) can contain both pre-tax and after-tax amounts. The tax treatment can become more complicated when those amounts are distributed and rolled over.
| Money in account | General tax character | Rollover consideration |
|---|---|---|
| Pre-tax contributions | Generally taxable when distributed unless rolled over or another rule applies. | Can generally be rolled into a traditional IRA or eligible pre-tax retirement plan. |
| After-tax employee contributions | Contributions have already been taxed. | May be directed to an eligible destination under applicable rollover rules. |
| Earnings on after-tax contributions | Generally pre-tax amounts. | Their destination can affect the resulting tax treatment. |
| Designated Roth contributions | Contributions are included in income when made; qualified distributions can generally be tax-free. | Generally roll to another designated Roth account or Roth IRA. |
Review the distribution before moving the money so you understand which amounts may be taxable.
Determine whether the account contains traditional, Roth or after-tax money.
Confirm that the distribution is eligible for rollover.
Decide whether the receiving account is a new plan, traditional IRA or Roth IRA.
Direct rollovers generally avoid the mandatory 20% withholding that applies to participant-paid eligible distributions.
Retain rollover confirmations and tax forms for your records and tax return.
A rollover is generally reportable even when the transaction is not taxable. Your plan administrator may issue Form 1099-R for the distribution, and rollover information is reported on your federal tax return.
The retirement plan generally reports distributions to you using Form 1099-R.
A rollover generally still needs to be reflected appropriately on your federal tax return.
Save the distribution statement, rollover confirmation and supporting account records.
Review these items before completing a rollover.
Complete guide to the major 401(k) rollover options.
Learn how direct transfers can avoid participant-paid withholding.
Understand the 60-day rollover and 20% withholding rules.
Learn how traditional 401(k) money can be moved to an IRA.
Understand the taxable conversion aspect of a Roth rollover.
Explore rollover rules for designated Roth 401(k) money.
Review what you can do with retirement money from a former employer.
Explore an illustrative rollover calculation.
Compare direct and indirect rollovers, explore Roth conversion treatment and use the rollover calculator for an illustrative scenario.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
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