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Author: TheBadger Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Anunity Date: 1/12/2000 2:19 PM
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If i withdraw my annunity before 59 1/2 can this be rolled into an Ira without paying the 10% penailty or income tax?


On the presumption that you are referring to regular after-tax annuity; it is not rollable into an IRA; therefore you will, at a minimum, owe regular income tax on the amount distributed less your basis in the contract.

However, you can avoid the 10% early withdrawal surtax through implimentation of IRC §72(q)(2)(D) SEPP's. §72(q) does not get discussed much; however, the rules for §72(q) are essentially the same as those for §72(t), its companion code section for 401(k)'s & IRA's. I suggest that you stroll over to the Retire Early Homepage & start reading the posts on §72(t) get some background information.

TheBadger
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