Annuities are designed as long term vehicles to be used later in life — at least until age 59 ½. To make annuity owners focus on their use later in life, the IRS imposes a 10% additional tax for any annuity accessed before that age minimum of 59 ½. The tax is in addition to any income taxes which may also be due on a pre-59 ½ distributions.
You have probably heard the term 401k before, but you may be unsure about how a 401k can benefit you. If this is the case, don’t worry, you are not alone. Read on to discover the answers to some of the most frequently asked 401k questions.