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.
It's taxed as ordinary income. If you're under age 59-1/2 you'll pay an additional 10% for a penalty on the total amount of the withdrawal. There are a few exceptions to the penalty. They'll most likely withhold 20% for taxes when you make the withdrawal.hen you cash out an IRA, it is taxed the same as income, plus an early withdrawl penalty, which will vary according to what type of fund it is and the amount you are taking out. Unless you are over the age of 59 1/2, it will cost you anywhere from 20-45% of the value of the account.