For contracts issued after 08/13/82, withdrawals prior to annuitization are treated on a "last in, first out" (LIFO) basis; e.g., the first money out is considered to be interest and is taxed as ordinary income. Funds placed in the contract before this date retain a "Dirst in, First out" (FIFO) basis.

Federal tax law imposes a 10% penalty for withdrawals made before the annuitant is age 59 1/2 unless he or she dies or becomes disabled, or distributions are made as substantially equal periodic payments over the life or life expectancy of the owner and any beneficiary.

Tax-Deferred Annuties
The Value of Tax Deferral
Withdrawals from a Tax-Deferred Annuity
Withdrawals After Annuitization

Variable Annuities
Fixed Annuity
Index Annuity

This document was last modified on July 15, 1999

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