Asked 1/6/2011
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Withdrawing money from annuity account I am needing to withdraw money from my Annuity account to help me with expenses on my new home. We are looking to close in February and I need the money to help me make my down payment. What will I be taxed for this on my income taxes I need to file and is their anyway I can lower that percentaged I will be taxed?
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Answer 1/1 - Submitted 1/6/2011
If it is a tax-deferred annuity, then there very well could be a time restriction that would penalize you if you withdraw from the annuity too soon. Find out how many years you're supposed to have this particular annuity before being able to withdraw from it and how that annuity would be paid to you if and when you do withdraw it. Also check to see if there are any age restrictions.
If you want to access some of your annuity, check with your insurance company to see if it contains a provision that allows you to withdraw 10% to 15% of it without a penalty under certain situations.
The longer you've had the annuity the better the chance that you can start withdrawing from it. If the annuity is tax deferred, then the amount you withdraw would be subject to regular taxes for unearned income.
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