taking money from annuity.

foghorn51 — Mon, 25 Jan 2021 20:21:04 GMT

I am taking money out of one of my Annuities. In my income bracket do I need to take out a percentage for taxes?

Re: taking money from annuity.

JoannaB2 — Mon, 25 Jan 2021 21:22:39 GMT

Yes, it is good to withhold taxes on any retirement distribution. Some employers require a 10% withholding on a retirement withdrawal. You may want to withhold taxes for the following reasons:

Under 59 1/2 years old - this is considered early withdrawal and is subject to 10% penalty on top of your regular income tax rate.
It increases your income tax bracket.

See this link, how does retirement plan withdrawal affect my taxes?

topic Re: taking money from annuity. in Retirement tax questions

taking money from annuity.

Re: taking money from annuity.