# annuity



## MechanicalDVR (Dec 29, 2007)

You can take it early but face a penalty like any other retirement account.


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## brucerjones (Aug 21, 2016)

no penalty that iˋm aware of at age 59.5 years of age. unless you can tell me more please. other than taxes due. I think no other penalties apply. I was just looking to see if any other rules apply. Thanks for your input.


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## MechanicalDVR (Dec 29, 2007)

brucerjones said:


> no penalty that iˋm aware of at age 59.5 years of age. unless you can tell me more please. other than taxes due. I think no other penalties apply. I was just looking to see if any other rules apply. Thanks for your input.


Any time you take payment before legal retirement age there is hell to pay one way or another. Depending on the plan borrowing against it can be a way around it.


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## Southeast Power (Jan 18, 2009)

brucerjones said:


> I'm a member of IBEW local 76. Currently retired. Drawing my Pacific Coast pension. I'm am 59.5 years of age and want to obtain my annuity. What are the rules. If anyone knows please reply.


That might depend on how it's structured and if you just want/need the cash or want to reinvest it.
Some people wait until they have a low income year and then take it with the tax penalties. 
This might not be a good place for advice but a place to get a referral to an advisor that can help with your specific situation. 
Free advice is worth what you pay for it. 
If I were you, I would find a FA that specializes in advising Union and railroad pension and retirement planning and pay them for a few hours of their time.


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## brucerjones (Aug 21, 2016)

Thank you so much for the input. It is a low income year for me. And I have an investment idea that should fit good better for me. I really like your insight as well as the other post from Mechanical DVR. 
Thank you all.


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## MechanicalDVR (Dec 29, 2007)

brucerjones said:


> Thank you so much for the input. It is a low income year for me. And I have an investment idea that should fit good better for me. I really like your insight as well as the other post from Mechanical DVR.
> Thank you all.


You're welcome. Sounds like the loan is more equitable choice.


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## John Valdes (May 17, 2007)

MechanicalDVR said:


> Any time you take payment before legal retirement age there is hell to pay one way or another. Depending on the plan borrowing against it can be a way around it.


Whats legal retirement age? My 401k's can be raided at 59.5 years of age. Its been this way for many years in the private sector.
The IRS considers you at 59.5 to be old enough to take money from the account without penalty. Only the tax due.
Damn those Roth IRA's look so damn good today! Wish I took Obama up on the Roth rollover plan!

Does the union have a later age set for retirement? Don't annuities have a maturation date? I know mine does. Its a 7 year annuity, with a double your money back after 12 years.
I would imagine the union annuity is an ongoing plan that will continue until the employee retires?


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## MechanicalDVR (Dec 29, 2007)

John Valdes said:


> Whats legal retirement age? My 401k's can be raided at 59.5 years of age. Its been this way for many years in the private sector.
> The IRS considers you at 59.5 to be old enough to take money from the account without penalty. Only the tax due.
> Damn those Roth IRA's look so damn good today! Wish I took Obama up on the Roth rollover plan!
> 
> ...


I had a chart from the company that handled our benefits and I believe that before 65 there were reductions or fees.


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## John Valdes (May 17, 2007)

MechanicalDVR said:


> I had a chart from the company that handled our benefits and I believe that before 65 there were reductions or fees.


 65? 59.5 is retirement age as far as 401k's, traditional or the Roth.


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## MechanicalDVR (Dec 29, 2007)

John Valdes said:


> 65? 59.5 is retirement age as far as 401k's, traditional or the Roth.


Yeah I think it was 65 that there were no penalties or fees.


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## HackWork (Oct 2, 2009)

I believe SS is 65 while 401K's and annuities are 59.5.


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## brucerjones (Aug 21, 2016)

SS can be taken earlier, at age 62 (I believe) with a (reduced amount) penalty. Until you reach your full retirement age. This depends on the year you was born as you probable know. But callulating one's life expectancy in mind the penalty is something to think deeply about. Doing the math the penalty is more favorable to most to take it earlier at age 62. Being most will not live long enough to capture the difference. I have many friends that have done this and they concur with this method. Also SS is in a state of demenation. Making this an even more favorable option in my minds eye.


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## brucerjones (Aug 21, 2016)

Also I would like to state. That age 59.5 is the correct age for an annuity withdrawal. You can take it earlier but you will pay an additional 10% lost in penaties for an early withdrawel. And at age 59.5 and beyound, I think they withhold 20% for taxes before they disburst it to you.


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## brucerjones (Aug 21, 2016)

I was born in 1957 so my full ss age is 66.5.


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## Bird dog (Oct 27, 2015)

FWIW sounds more like you need to find a good retirement planner. It's all about mailbox money. They need to be a member of FINRA & SIPC, so, they have a fiduciary responsibility to you. Also, get good referrals. This is going to be the kind of person you will meet with once a year.


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## Bird dog (Oct 27, 2015)

Since your post is titled "Annuities", below are two good educational resources IMO. 

http://annuityguys.org/

http://www.stantheannuityman.com/


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## Loose Neutral (Jun 3, 2009)

I think you can draw from your annuity earlier than 59 1/2 without penalty if you are retired under a qualified pension plan.


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