Required Minimum Distributions Required minimum distributions from your Allianz annuity that is held within a tax- qualified plan (IRA, SEP, etc.) will qualify as penalty-free withdrawals. The accumulation value and the amount available for free withdrawals will be reduced by the amount of the distribution(s). In addition, the PIV will reduce by the same percentage that the accumulation value is reduced. Please keep in mind that purchasing an annuity within a retirement plan that provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefit. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. Please consider all annuity features, risks, limitations, and costs before purchasing an annuity within a tax-qualified retirement plan. Note: The money you take out may be taxable . Your contract values grow tax-deferred. However, any money you take from your contract, including penalty-free withdrawals, other partial withdrawals, and required minimum distributions, may be taxable as ordinary income. Because annuities are meant for long-term purposes, if you are under age 59 ½ when you take a distribution, it may be subject to a 10% federal additional tax.
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