Are there penalties for early withdrawal?
ANSWER:
An annuity is intended to be a long-term, tax deferred investment tool designed for retirement purposes. Earnings are taxable as ordinary income when withdrawn and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.
Withdrawals may be subject to withdrawal charges and an excess interest adjustment. During the withdrawal charge period, the annuity's cash value may be worth less that the principal allocation. Also, the insurance company may impose a penalty, called a surrender charge, if you receive disbursements early, prior to the end of the surrender charge schedule defined in your contract.
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Health Savings Accounts
You can use this account to pay for your qualified health expenses, including expenses that the plan ordinarily doesn’t cover, such as eyeglasses and hearing aids.
Expenses paid out of the HSA that are eligible expenses under your high-deductible health plan will count toward the plan’s deductible.
