Calculate Your Solo 401k Early Withdrawal

Withdrawal Amount Enter the amount you plan to withdraw from your Solo 401k
Current Age
Account Type
Account Age (Roth only)
Current Tax Bracket (%) Enter your marginal tax rate (the rate on your last dollar of income). 2025 federal tax brackets range from 10% to 37%.
Penalty Exception Check if you qualify for any IRS-approved exception (see list below)

Solo 401k Withdrawal Summary & Results

Requested Withdrawal Amount $0.00
Early Withdrawal Penalty (10%) $0.00
Income Tax $0.00
Total Taxes and Penalties $0.00
Net Amount Received $0.00

Solo 401k Early Withdrawal Rules & Guidelines

Early Withdrawal Penalty Rules

Withdrawing money before age 59½ typically results in a 10% early withdrawal penalty plus income taxes on the withdrawn amount. For Roth accounts, you must meet the 5-year rule to avoid penalties. However, if you have an existing Roth IRA that meets the 5-year requirement, you can roll over the Solo 401k funds to avoid this waiting period.

Qualifying Exceptions for Penalty-Free Withdrawals

The IRS allows certain exceptions to the 10% early withdrawal penalty. These may include:

  • Total and permanent disability
  • Death (distribution to beneficiary)
  • Medical expenses exceeding 7.5% of your adjusted gross income
  • Series of substantially equal periodic payments (SEPP/72t)
  • Separation from service at age 55 or older
  • Being called to active duty military service
  • Birth or adoption expenses (up to $5,000)
  • IRS levy on the retirement plan

For complete details about qualifying exceptions and requirements, refer to the IRS guidelines on early distribution exceptions and learn more about hardship withdrawals. Consider consulting with a tax professional to determine if you qualify for an exception.

Solo 401k Loan Alternative

Instead of withdrawing, consider a Solo 401k loan. You can borrow up to 50% of your vested balance (maximum $50,000). Compare hardship withdrawals vs loans.

Required Minimum Distribution (RMD) Rules

Starting at age 73, you must begin taking required minimum distributions (RMDs) annually. Check the RMD table for required amounts. Learn how to fix missed RMDs.

Tax Implications for Early Withdrawals

Traditional Solo 401k withdrawals are taxed as ordinary income. Check current tax brackets. Qualified Roth vs Traditional withdrawals have different tax treatments.

Key Considerations Before Withdrawing

  • Early withdrawals reduce your retirement savings and future growth potential
  • Consider all alternatives before taking an early withdrawal
  • Withdrawals may affect your tax bracket for the year
  • Some plans may restrict new contributions for 6 months after a hardship withdrawal
  • Consult with a tax professional before making any withdrawal decisions

Important Disclaimer

This calculator and the information provided are for educational and illustrative purposes only.

  • Tax laws and regulations are complex and subject to change
  • Individual circumstances may vary significantly
  • State and local taxes are not included in these calculations
  • Additional taxes or penalties may apply based on your specific situation
  • The calculator provides estimates only and actual taxes and penalties may differ
  • Not all exceptions or special circumstances can be accounted for by this calculator
  • This is not tax, legal, or financial advice
  • Consult with qualified tax, legal, and financial professionals before making any retirement account withdrawals
  • Carry.com and its affiliates are not responsible for any decisions made based on these calculations

By using this calculator (version 1.0.0), you acknowledge that you understand these limitations and will seek professional advice for your specific situation.

Learn More About Solo401k’s in our Comprehensive Guide

The Solo 401k Handbook

Everything you need to know about the most powerful retirement plan for business owners and the self-employed.