Date: Fri, 23 Dec 2005 16:44:19 -0600
From: "cal lester" 
Newsgroups: misc.invest.financial-plan
Subject: Re: non-qualified annuity
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A Federal Income Tax on Gain if any, PLUS a Penalty on the Gain
Cal Lester  CLU


"buckeye1"  wrote in message
news:1f3d202a154e781c0681f3b795c3ed67@localhost.talkaboutinvestments.com...
> Say someone invested 50k into a NON-qaulified annuity. After being in the
> product 5 years the balance is now 43k. If the person is under 59 1/2,
> but
> wants to pull the money, will the 10% federal penalty be on the entire
> amount? Or would there only be a penalty on the gains, if there were any?
>
>
> There seems to be this misconception that there is not a 10% penalty for
> pulling a NonQ annuity before the age of 59 1/2. I know that there is a
> penalty, I am just not sure if it is on the entire amount invested, or
> just on the gains.
>