401kUnderstand the tax rules that govern your 401(k) — in plain English.
401kTaxLaws.com breaks down federal contribution limits, withdrawal penalties, required distributions, rollovers, and the SECURE 2.0 Act changes that affect how your retirement savings are taxed.
Independent educational reference. Not affiliated with the IRS or any government agency.
Contribution Limits
How much you and your employer can put in each year, plus the catch-up rules for older savers.
02Traditional vs. Roth 401(k)
The difference between pre-tax and after-tax 401(k) money, and how each is taxed later.
03Early Withdrawal Penalty
When the 10% penalty applies before age 59½ — and the exceptions that let you avoid it.
04Required Minimum Distributions
The age you must start withdrawing, how the amount is calculated, and the penalty for missing one.
05Rollover Rules
How to move a 401(k) to a new employer plan or an IRA without triggering tax.
06401(k) Loans
Borrowing from your own account, repayment rules, and what happens if you leave your job.
07Hardship Withdrawals
What counts as an immediate and heavy financial need, and how these withdrawals are taxed.
08Inherited 401(k) Rules
The 10-year rule, spousal options, and how beneficiaries are taxed on inherited accounts.
09SECURE 2.0 Act Changes
A running list of what the 2022 SECURE 2.0 Act changed — and when each change takes effect.
Why 401(k) taxation is confusing
A 401(k) isn't taxed once — it's taxed differently depending on when money goes in, when it comes out, why it comes out, and who is taking the distribution. The same account can involve ordinary income tax, a 10% early withdrawal penalty, mandatory withholding, state tax, and (for heirs) an entirely separate set of inherited-account rules. Congress has also changed several of these rules in the last few years through the SECURE Act (2019) and SECURE 2.0 Act (2022), which is why older articles you find elsewhere may already be out of date.
This site organizes the rules by the situation you're actually facing — contributing, changing jobs, taking money out early, reaching retirement age, or inheriting an account — so you can find the specific answer instead of wading through the entire tax code.
Start here
- Glossary of 401(k) tax terms — if a word like "vesting" or "elective deferral" is unfamiliar, start here.
- Frequently asked questions — short, direct answers to the questions people search for most.
- SECURE 2.0 Act changes — see what's changed recently and what's still phasing in.