What the balance is
Your statement shows the market value of the account. In a traditional 401(k), 403(b) or IRA, that money has generally not been taxed yet. Income tax is due when it is paid out.
Withdrawals before 59½
The IRS calls amounts taken from an IRA or retirement plan before age 59½ early distributions. Individuals must pay an additional 10% early withdrawal tax on them unless an exception applies.
Which plans this covers
According to the IRS, the additional tax generally applies to early distributions from qualified plans, 403(a) or (b) annuity plans and traditional IRAs. Qualified plans include 401(k) and profit-sharing plans.
What the calculator does
It counts the balance you enter, with no tax taken off, and shows the share of your assets held in retirement accounts as its own line. That keeps the before-tax figure visible instead of mixing it into cash.
If you want an after-tax view
Enter a lower amount that reflects your own tax estimate. The calculator does not estimate taxes, because they depend on your income, your state and the exceptions that apply to you.