Minding Your Ts and QsMinding Your Ts and Qs

In the last couple of years, the housing market has begun to rebound, and the unemployment rate has been dropping. Despite the improvements in the economy, many individuals, including those who are unemployed or under employed, have been forced to seek other sources of income to help meet the expenses and needs of their families. For many, this circumstance has meant withdrawing money from an individual retirement account or, perhaps, a non-qualified annuity (NQA). How can these accounts be accessed in a tax efficient way that avoids the imposition of any penalties, but not the income taxes, on distributions from an IRA, qualified plan or NQA? 

Distributions from both qualified and NQA contracts are subject to a 10 percent penalty tax, un...