---
title: Tax from an Early 401(k) Withdrawal: 2026 Guide | TaxTruce
url: https://taxtruce.com/health/early-401k-withdrawal
updated: 2026-10-29
---

# Took money from your 401(k) early?

Watch for the 10% extra tax.

Updated October 8, 20262 sources[Fact checked](/editorial-standards)

The short answer

## What should I do about tax from an early 401(k) withdrawal?

Money taken from a 401(k) or IRA before age 59 and a half is usually taxed as income, plus a 10% extra tax. Some exceptions apply, like a levy by the IRS or big medical bills.

**The additional tax on early distributions is 10% of the part that counts as income.**[Source: IRS: Topic 558, Additional tax on early distributions](https://www.irs.gov/taxtopics/tc558)

The tax withheld from the withdrawal may not be enough. You may need to make estimated tax payments.

Exceptions include total disability, leaving your job after 55 (for a work plan), medical costs over 7.5% of income, and an IRS levy on the plan.

Report the extra tax on Schedule 2 and, in some cases, Form 5329.

## Key facts

* Your Form 1099-R and its distribution code
* How much was withheld
* Your age at the time
* Whether an exception fits
* Whether you need estimated payments

## Options that may help

**Check exceptions**

An exception can remove the 10% extra tax.

**Estimated payments**

Pay during the year so you don't owe a big bill.

**Payment plan**

If you owe at tax time, set up a plan.

Results depend on your situation. Not every case qualifies.

## Common questions

If the IRS levies my 401(k), do I pay the 10%?

No. Distributions made because of an IRS levy are an exception to the 10% extra tax.

Source: [IRS: Topic 558, Additional tax on early distributions](https://www.irs.gov/taxtopics/tc558)

## Sources

1. [IRS: Topic 558, Additional tax on early distributions](https://www.irs.gov/taxtopics/tc558)
2. [IRS: Estimated tax FAQs](https://www.irs.gov/faqs/estimated-tax)

General information, not tax or legal advice. You can contact the IRS yourself for free at [irs.gov](https://www.irs.gov).

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.