"tray" <traygo[at]hotmail.com> wrote:

- quote -

That should set off alarm bells all over your brain. Run,
run, like the wind, away from this guy.

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"tray" <traygo[at]hotmail.com> wrote:

- quote -

Annuities are great for certain people and circumstances..
but usually NOT if you need your money. Most annuities have
surrender charges if you try to withdraw too much in the
first few years.

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I've looked at IRS publications, and searched newsgroups,
but get more confused the more I look.

My wife and I want to contribute to a traditional IRA as
we've done in the past, but both our jobs are a little
uncertain right now. My banker says to get a Annuity rather
than CDs, as there aren't penalties in case having to "cash
them in" in case of un-employment. I asked him if he meant
"no Bank penalties, but possible IRS pentalities", he just
repeated "no penalities".

One place I looked at IRS said something about unreimbursed
medical expense in relation to unemployment, other places I
looked didn't mention unemployement. Also, one IRS site said
"there may be 25% instead of the 10% penalties" in some
cases, but then didn't say what those cases are.

I guess what I'm asking is: Worst case scenario, would I
have to pay 10% penalty or 25+10% penalty? Of course, I'd
have to pay tax on any distribution.

Pretty simple, tax-wise, don't own home, do not itemize,
only use the standard deduction...

I know this is a FAQ, but all the answers I saw were vague,
or pointed to the IRS publication which was vague also (at
least, vague to me....)

Thanks

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