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.
Worked examples
Each scenario below is computed by the same retirement engine that powers the interactive calculator above — no hand-typed numbers.
401k drawdown from $800k at 65
Retiree at 65 with $800,000 saved, no additional contributions, withdrawing to cover $55,000/year spending with $2,000/month Social Security.
Projected nest egg
$800,000
Required (today's $)
$621,219
Funded ratio
129%
Monthly income
$4,667/mo
$800,000 at a 4% SWR supports $32,000/year from the portfolio. Add $24,000 Social Security = $56,000 total — closely matching the $55,000 spending target.
Underfunded at 65 — how long does it last?
Retiree with only $300,000 saved at 65, needing $60,000/year and receiving $1,800/month SS — the "years money lasts" reveals the shortfall.
Projected nest egg
$300,000
Required (today's $)
$769,510
Funded ratio
39%
Monthly income
$2,800/mo
When the portfolio must cover $38,400/year ($60k − $21.6k SS) from $300,000, the money runs out well before life expectancy — the exact age appears above.
More retirement questions
When do Required Minimum Distributions (RMDs) start?
As of 2024, RMDs begin at age 73 for traditional 401k and IRA accounts. Roth IRAs are not subject to RMDs during the owner's lifetime. The RMD amount is calculated by dividing your account balance by an IRS life-expectancy factor that decreases each year, resulting in gradually increasing withdrawals.
How much can I withdraw from my 401k each year?
There is no legal annual withdrawal limit on 401k distributions after age 59½ (when the 10% early-withdrawal penalty ends). However, the sustainable amount is governed by your portfolio size and how long it needs to last. The 4% rule suggests withdrawing 4% of your initial balance in year 1, then adjusting for inflation — on $1 million, that is $40,000/year initially.
What this calculator does — and does not — compute
Retirement projections involve inputs that come from government agencies, employers, and tax rules this tool cannot access. Here is exactly what you are providing versus what this calculator handles on its own.
- 1.Social Security is not calculated here. You enter your own monthly estimate in the “Other monthly income” field. This tool does not access your earnings record or apply Social Security benefit formulas. To get your actual personalized estimate, create a free account at ssa.gov/myaccount.
- 2.Required Minimum Distributions (RMDs) are not modeled. The drawdown projection shows balance depletion under your stated withdrawal rate, but it does not enforce IRS RMD schedules (which begin at age 73 for most accounts) or calculate RMD amounts from IRS life-expectancy tables. If RMDs apply to you, actual withdrawals may differ from the projection shown.
- 3.Pension income is an input you provide, not a computed output. If you have a defined-benefit pension, enter your expected monthly payment in “Other monthly income.” This tool does not compute pension formulas (FERS, CalPERS, military, state, or private plan formulas) and does not connect to any employer or government pension system.
- 4.Withdrawal tax treatment is simplified and illustrative. The projection shows gross withdrawals from your portfolio. It does not calculate federal or state income taxes on traditional 401k or IRA distributions, does not model Roth tax treatment, and does not account for RMD-driven bracket changes. Actual after-tax income will differ. For tax planning specific to your situation, consult a qualified tax professional.
- 5.Any depletion result is a projection, not a guarantee. “How long your money lasts” and similar outputs are calculated under your stated return rate, inflation rate, and spending assumptions. Actual outcomes depend on market performance, sequence of returns, unexpected expenses, and life events that cannot be modeled in advance. A projection is a planning tool, not a promise.
This calculator is for educational and planning purposes only. It does not constitute financial, tax, or investment advice.