non qualifed annuity

a client has a NQ annuity worth 14k. Her cost basis is 13k. she is 45 yrs old.

Am i correct in stating: that if she needed to take out the money, she would only be taxed on the $1000 and be hit with a 10% penalty only on the $1000?

Thank you,

Doug



Correct. No gain, no pain.



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