🔄 How much will you save with a direct 401k rollover?
💼 Rollover Details
When you leave a job, moving your 401(k) can be tricky. As Erin Talks Money points out, if you choose an indirect rollover, a $300,000 balance might result in a check for only $240,000. The IRS automatically withholds 20% for taxes.
If you don't replace that missing 20% out of pocket within 60 days, it counts as an early withdrawal. This calculator shows exactly how much that mistake could cost you in taxes and penalties compared to a direct, institution-to-institution rollover.
💸 The Cash Crunch
With an indirect rollover, you have just 60 days to deposit the full original balance into your new account. That means floating the missing 20% using your own bank savings.
If you can't cover it, that missing money becomes a taxable distribution. You owe standard income tax on it, plus an extra 10% penalty if you are younger than 59½. A direct rollover bypasses this headache completely.
🔗 See Also
For further related reading, check out:
📊 Results
IRS Withholds
Check Received
Best Move
Either works
Direct Savings
Calculator updated by heyfinfam (v26.7.0) · View history
Privacy: None of your data is transmitted to the author of this view or any other third parties. Financial inputs are never used to identify you; they're only used to calculate results.
Disclaimer: This content and any calculations provided are for informational purposes only. The views, calculations, and methodologies expressed are those of the author and do not necessarily reflect those of this platform. Not financial advice. Users are solely responsible for any decisions made based on this information.
See more views
Roth or traditional 401(k)?
Compares what a year of Roth versus traditional pre-tax 401(k) contributions is worth at retirement, given your current marginal tax rate and the rate you expect to pay in retirement.
Calculate the long-term impact of an early retirement withdrawal and see how quickly you can rebuild your path to financial independence.
Am I leaving 401(k) match on the table?
Checks whether your 401(k) contribution rate captures your full employer match, and shows the annual dollars you're forfeiting plus what those missed dollars would compound to by retirement.