Am I right that if I purchase a 10 year, immediate, income annuity that is funded with after tax dollars and not connected to an employer plan, that the 10% IRS penalty will not apply?
IRS Publication 939 (12/2018), General Rule for Pensions and Annuities, says nothing about the 59 1/2 rule. It states that I will pay tax in equal amounts every month on the interest earned during the annuity contract.
IRS Publication 575 (2021), Pension and Annuity Income, says I will be penalized for making withdrawals before 59 1/2?
I am currently 50, any thoughts would be greatly appreciated.
