401k Hardship Withdrawal vs Loan Withdrawal Calculator
This calculator helps you compare the financial impact of taking a 401k hardship withdrawal versus a 401k loan. Enter your current 401k balance, desired withdrawal amount, and other details to see a side-by-side comparison of taxes, penalties, and long-term costs over 10 years. The calculator shows you exactly how much you'll need to withdraw to receive your desired amount after taxes and penalties, and compares this with structured loan payments that go back into your account.
Current 401k Balance
Enter your total 401k account balance
Amount Needed
Enter how much money you need (minimum $1,000)
Current Age
Used to determine early withdrawal penalties
Current Tax Bracket (%)
Enter your marginal tax rate
Expected Annual Return (%)
Estimated annual return on your 401k investments
Hardship Status
Select whether your hardship qualifies for penalty exemption
Side-by-Side Comparison
Hardship Withdrawal
Gross Amount
Total amount you need to withdraw to receive your desired amount after taxes and penalties
$0.00
Income Tax Due
Based on your tax bracket
$0.00
Early Withdrawal Penalty
Not waived - non-
qualified hardship
$0.00
Net Amount Received
After taxes and penalties
$0.00
10-Year Cost
Estimated lost growth over 10 years
$0.00
401k Loan
Loan Amount
Maximum 50% of balance or $50,000
$0.00
Monthly Payment
5-year term (15 for home purchase)
$0.00
Interest Rate
Prime + 1%
0.00%
Total Interest Paid
Goes back into your account
$0.00
10-Year Cost
Estimated lost growth over 10 years
$0.00
Total Cost Comparison (10-Year Impact)
Including taxes, penalties, and estimated lost growth
Hardship Total Cost
$0.00
Loan Total Cost
$0.00
For a needed amount of $0.00: A hardship withdrawal requires withdrawing $0.00 to cover taxes and penalties...
Understanding Your Options
Hardship Withdrawal Key Points
- Must demonstrate immediate and heavy financial need
- No repayment required
- Subject to income taxes
- 10% early withdrawal penalty if under 59½
- Permanently reduces retirement savings
- May be restricted from contributing for 6 months
- Cannot roll over to another retirement account
401k Loan Key Points
- Borrow up to 50% of vested balance (max $50,000)
- Must be repaid within 5 years (15 for home purchase)
- No taxes or penalties if repaid on time
- Interest payments go back into your account
- Loan becomes due if you leave your job
- Missed payments may trigger taxes and penalties
- Reduces investment growth potential
Key Differences
| Feature | Hardship Withdrawal | 401k Loan |
|---|---|---|
| Repayment Required | No | Yes |
| Tax Impact | Immediate taxes due | No immediate taxes if repaid |
| Early Withdrawal Penalty | Yes (if under 59½) | No (if repaid) |
| Impact on Contributions | May be restricted for 6 months | Can continue contributing |
| Maximum Amount | Based on need | 50% of balance or $50,000 |
Important Disclaimer
This calculator provides estimates only and should be used for educational purposes only.
- Actual tax implications may vary based on your specific situation
- Not all 401k plans offer both hardship withdrawals and loans
- Additional restrictions may apply based on your plan rules
- Future investment returns are estimates and not guaranteed
- Consult with qualified tax and financial professionals before making any decisions