Pension IRP Early Withdrawal Tax Calculator

Estimate early withdrawal tax drag and remaining retirement value from a pension or IRP-style account.

Pension and IRP early withdrawal tax

Estimate Korean pension/IRP early withdrawal tax, unavoidable-reason relief, and after-tax cash received.

Selected tax

₩4,950,000

16.5%

Net cash received

₩25,050,000

General-withdrawal tax

₩4,950,000

Unavoidable-reason tax

₩1,650,000

Relief saving

₩3,300,000

General tax minus unavoidable-reason tax

Taxable base

₩30,000,000

Investment gain ₩10,000,000

Preserves Korean 16.5% other-income tax, 3.3% to 5.5% unavoidable-reason pension income tax, tax-free non-deducted principal, and IRP retirement-source taxation. This English finance calculator calls the Korean feature lib for its numeric result. KRW inputs and outputs replace the old generic USD projection stub for this batch.

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Pension savings and IRP early-withdrawal tax calculator

This English guide translates the Korean early-withdrawal tax page for pension savings and IRP. The calculator calls calculateEarlyWithdrawalTax and preserves taxable sources, unavoidable-cause relief, and retirement-pay treatment.

General early withdrawal

Pension savings and IRP receive tax benefits because they are designed for retirement income after age 55. If the account is closed or withdrawn early outside pension conditions, credited contributions and investment gains generally face 16.5% other-income tax.

Non-credited principal is not taxed again as principal, but gains generated from that principal can still be taxable. The Korean page warns that early withdrawal taxes the gain as well as previously credited contributions, not just the refund amount received at year-end.

Unavoidable reasons and IRP retirement pay

Certain unavoidable reasons can apply low pension-income tax instead of 16.5%. The Korean content lists rates by age: 5.5% for age 55 to 69, 4.4% for age 70 to 79, and 3.3% for age 80 or older.

For IRP balances that include transferred retirement pay, the retirement-pay source is taxed differently. Receiving it as pension can reduce retirement income tax by 30% to 40%, but lump-sum early withdrawal can lose that reduction and apply 100% of retirement income tax.

Before closing the account

The calculator separates account type, withdrawal reason, total balance, credited principal, non-credited principal, investment gain, age, retirement-pay source, and prior tax-credit rate. It then reports tax, net receipt, and practical loss versus past credit.

Use non-credited principal or legally allowed partial withdrawal first where available. IRP partial withdrawal is usually restricted to statutory reasons, so closing the whole account can be much more expensive than expected.