Can you withdraw 100% of your pension?
Withdrawing all your money from a Transamerica retirement or annuity account is possible, but it is subject to the specific terms of your contract and strict IRS regulations. If your account is a retirement plan, such as a 401(k) or an IRA, you can generally take a lump-sum distribution. However, if you are under age 59½, you will typically face a 10% early withdrawal penalty in addition to mandatory federal income tax withholding. Furthermore, if you hold an annuity, withdrawing the entire balance may trigger surrender charges if you are still within the contract's surrender period. Because annuities are insurance products designed to provide long-term income, you should carefully review your policy documents to see how a full liquidation affects your benefits. It is highly recommended that you consult with a tax professional or financial advisor before initiating a full withdrawal to understand the significant tax consequences and whether rolling the funds into another qualified account might be a better alternative to avoid immediate taxation.
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