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401(k) Early Withdrawal Calculator

Calculate Impact of Early Withdrawal from 401(k) Plan

Some qualified retirement plans include the option for qualifying participants to a take a loan against their retirement account balance. Many people borrow from their retirement plan to pay off high-interest debt or to make a major purchase. Although the borrowing rates may be favorable, usually 1-2 percent above the prime rate, the impact on future retirement earnings needs to be taken into account. This calculator can help you make a more informed decision about whether a loan is the right approach for your financial situation.

During the loan repayment period, if you elect to suspend ongoing contributions to the plan, your future retirement account balance may be further impacted. This analysis does not take into account any loan initiation fees that might apply. It also does not consider the impact of taking a withdrawal from the plan for financial hardship (purchase of a primary residence, college tuition, funeral expenses, etc.). Contact your plan administrator for details on the loan and withdrawal options available to you.