non qualified annuity

L1: non qualified annuityIs the early withdrawal, before age 59 _, from a Non Qualified Annuity subject to the 10% penalty (72t). This annuity lost money and there is only principal, not earnings. Is the loss deductible2006-08-23 10:02, By: Dennis, IP: [151.201.137.223]
L2: non qualified annuityThe 10% penalty applies to non-qualified annuities under IRC Section 72(q). It would be applied to any gain under the contract – no gain, no penalty.
2006-08-23 14:14, By: Gfw, IP: [172.16.1.73]

L2: non qualified annuity
For a non-qualified annuity loss to be tax deductible, the loss must be realized by completely cashing out or surrendering the annuity – no exchanges.
The loss would probably be claimedunder schedule A itemized miscellaneous deductions. A more aggressive approach would be to take the loss as an ordinary loss against income.
2006-08-23 14:51, By: Gfw, IP: [172.16.1.73]