For population 25 years and over in Kite: 1  High school or higher: 63.8%. 2  Bachelor's degree or higher: 3.0%. 3  Graduate or professional degree: 2.0%. 4  Mean travel time to work (commute): 30.5 minutes.
If the annuity is in a Roth IRA, all of the withdrawals will be tax-free as long as youâve had the Roth for five years and are older than 59Â½. Taxes are just one issue to consider when deciding whether or not to convert your annuity into a income stream, however.
This penalty is in addition to any income tax that you may owe on funds from your IRA. If your normal income tax rate is 20% and you withdraw $10,000 in taxable funds from your IRA to pay off loans prior to reaching retirement age, your effective tax rate for this distribution is 30%. Of the $10,000 you withdraw, you will owe $3,000 in taxes.