Direct answer
You will generally face a 10% federal tax penalty on the earnings portion of your withdrawal if you are under age 59 1/2, unless an exception such as disability or substantial equal periodic payments applies.
Internal Revenue Service publication regarding taxation of individual retirement arrangements and annuity distributions. For additional information about the tax treatment of early distributions, see the Internal Revenue Service‘s guide on Pension and Annuity Income.
What this means for you
You will generally face a 10% federal tax penalty on the earnings portion of your withdrawal if you are under age 59 1/2, unless an exception such as disability or substantial equal periodic payments applies.
ANNUITYFACTCHECK
Protecting Your Future with Confidence
No pressure. No jargon. Just honest answers from advisors who genuinely care about your family’s protection.
This page is informational and not a coverage guarantee or quote.
