Once you stop contributing and start spending, the question flips from “how much will I have?” to “how much can I safely take out?” This calculator models drawing down a 401(k) (or IRA) through retirement, so you can see both a sustainable annual withdrawal and how long the balance lasts at the spending you have in mind.
It’s pre-filled for someone retiring at 65 with $800,000, spending $55,000 a year with Social Security alongside — change any figure to match your own situation.
How much can you withdraw safely?
A widely used starting point is the 4% rule: withdraw about 4% of the balance in your first year, then adjust that dollar amount for inflation each year. On $800,000 that’s roughly $32,000 in year one, on top of Social Security. The calculator lets you set a more cautious or more aggressive rate in the assumptions.
Your safe rate isn’t fixed in stone. Retiring earlier, living longer, or a rough run of early market returns all argue for a lower starting withdrawal; a shorter horizon or strong early returns can support more.
Required minimum distributions (RMDs)
Traditional 401(k)s and IRAs eventually force withdrawals: required minimum distributions begin at age 73 under current rules, calculated from your balance and life expectancy. They can push your taxable withdrawals above what you’d otherwise choose, so they matter for tax planning even if your spending is modest.
Roth 401(k)s rolled into a Roth IRA avoid RMDs entirely, which is one reason some retirees convert. This calculator focuses on the spending side; treat RMDs as a tax consideration layered on top.
Don’t forget taxes
Withdrawals from a traditional 401(k) are taxed as ordinary income, so the amount you can actually spend is less than the amount you withdraw. If you need $55,000 to live on and you’re in a 15% effective bracket, you may need to withdraw closer to $65,000 before tax.
Model your spending in the after-tax terms you actually live on, and remember that a mix of pre-tax, Roth, and taxable accounts gives you levers to manage the tax bill year to year.
Frequently asked questions
How much can I withdraw from my 401(k) per year?
A common guideline is about 4% of the balance in the first year, then adjusted for inflation — roughly $32,000 a year on $800,000. The calculator shows how long that lasts and lets you test other withdrawal rates.
How long will my 401(k) last?
It depends on your balance, withdrawals, returns, and other income. At a sustainable 4% rate, a balance is generally designed to last 30+ years. Enter your numbers above to see the projected depletion age for your spending.
When do I have to start withdrawing from my 401(k)?
Required minimum distributions from traditional 401(k)s and IRAs currently begin at age 73. Roth 401(k) money rolled to a Roth IRA is exempt. RMDs are a tax matter on top of your chosen spending.
Are 401(k) withdrawals taxed?
Withdrawals from a traditional 401(k) are taxed as ordinary income, so budget in after-tax terms — you may need to withdraw more than you spend. Roth 401(k) withdrawals are generally tax-free in retirement.