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    themiller3's Avatar
    themiller3 Posts: 1, Reputation: 1
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    #1

    Jul 31, 2009, 10:37 AM
    Tax Estimate on Annuity Withdrawl
    I am withdrawing early a bonus dex annuitiy. I understand the 10% early IRS penalty but want to have the insurance co keep enough more to cover taxes. I don't want any surprises come tax time. How do I figure out what percentage to have them keep? Will I have to pay state tax as well? I don't want to miss anything here. Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Aug 3, 2009, 02:03 PM
    Have them withhold 30% plus a set amount for the STATE income tax liability (at least 5%). That should cover the bulk of your tax liability.
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