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.
Before we look at the reasons people cash out of their IRAs early, let's explain the basic difference between a traditional and a Roth IRA. It has to with when you are taxed.With a traditional IRA, your contributions to the account are not taxed. But any money you withdraw after age 59 Â½ is taxed as income. A Roth IRA is the exact opposite. You pay income tax on contributions, but you can withdraw money tax-free.