We got an early distribution from a non-qualified annuity jointly owned - wife is <59.5 and husband is >59.5. 1099-R came with wife's SSN and distribution code 1D. We took an early withdrawal with no penalty up to 5% as per contract - they didn't say we would have a tax penalty. Do we really owe 10% tax penalty for the entire amount when the husband is >59.5?
