Yes, you may have an additional 10% tax on this distribution if the annuity is a qualified annuity and you are under 59-1/2.
Texas Roger is correct that the amount withheld is just an estimate of the taxes on the distribution, and you may owe more or less when you file your return, but you may also have a 10% penalty if this is considered an early distribution from a retirement plan.
If you took a distribution from your 401(k) or another qualified retirement plan (excluding IRAs) before you turned 59 1/2, you'll pay a 10% early withdrawal penalty, with a few exceptions:
- Death, or total and permanent disability
- Qualified Domestic Relations Order
- Series of substantially equal periodic payments based on life expectancy
- Dividend pass through from an ESOP
- IRS levy
- Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
- Certain distributions to qualified military reservists called to active duty
- Separation from Service if age requirement is met
Once you enter the distribution information from your 1099-R form, TurboTax will help you check for any exceptions that could reduce the tax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
