Most people must start taking required minimum distributions (RMD) from their qualified accounts once they turn 72.
When should you start annuity withdrawals?
To avoid owing penalties to the IRS, wait to withdraw until you are 59 ½ and set up a systematic withdrawal schedule. What is the free annuity withdrawal provision? Many, but not all, insurance companies allow you to withdraw up to 10% of your funds prior to the end of the surrender period.
What are the rules for withdrawing from an annuity?
If you withdraw money from an annuity before you are 59 1/2 years old, you will generally have to pay a 10% early withdrawal penalty. In addition, you may also have to pay surrender charges if you withdraw money from a deferred annuity before maturity.
At what age can you start taking payments on an annuity?
The typical age restriction is around 80. Many insurance companies will not allow you to purchase an annuity with an income rider until you are 50 or older.