I've had a variable annuity for about 30 years. I started a SEPP withdrawal program about 10 years ago. These payments have been coded as...
1 - Early distribution (except Roth)
D - Annuity payments from non-qualified annuities
Now that I've turned 59 1/2 will the insurance company continue to code these withdrawals as 'early distributions' or will they now become coded as 7 - 'Normal Distribution'? If not, I was thinking about ending these SEPP withdrawals and just taking out withdrawals manually as I please -- That's IF there's a tax savings by taking out 'normal' distributions versus 'early' distributions.
One more question. My home burnt down in the Palisades fire. I heard that I maybe get some sort of tax break on annuity withdrawals? Would that mean NO ordinary income tax on withdrawals? I would clear out ALL of the money from this annuity if that were the case!
