Calculate Cost of 401k Cashout

Source: Boston University Center for Retirement Research

Source: Boston University Center for Retirement Research

One of the most important decisions 401k participants face is what to do with their account balances when they terminate employment or retire. Cashing out even small amounts – that is, taking money out instead of rolling it over into an IRA or into an employer’s 401k – can have a detrimental effect on ultimate retirement accumulations. Depending on age, tax bracket and the amount in the account, a wrong decision will cost thousands of dollars both in taxes and lost earnings. This calculator clearly illustrates the options – including tax costs and lost earnings – and gives you the information needed to make the best decision.


Information and the interactive Cash Out Calculator for a 401k are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.