Since fixed rates are so great I am contemplating the purchase of an annuity within a trust, with a minor designated as the beneficiary. This beneficiary would gain access to the funds upon reaching the age of 21.

I understand that withdrawals from an annuity prior to the age of 59 ½ typically incur a 10% penalty.
However, I would like to clarify whether this penalty applies solely to the gains earned, or if it is assessed on the total amount withdrawn from the annuity. Additionally, are there any specific considerations or exceptions to this rule that might apply to a trust where the beneficiary is a minor?

Thank you for your guidance on this matter.