The question was: What is the tax treatment on guaranteed lifetime withdrawals or other partial withdrawals and loans made against a variable annuity?

a) Last in, first out, with a 10% tax penalty for withdrawals prior to age 59 1/2
b) First in, last out, with a 10% tax penalty for withdrawals prior to age 59 1/2
c) Last in, first out, with a 10% tax penalty for withdrawals after to age 59 1/2
d) First in, last out, with a 10% tax penalty for withdrawals after to age 59 1/2

The answer is: a). In a variable annuity, the tax treatment on guaranteed lifetime withdrawals or other partial withdrawals and loans is last in, first out, with a 10% tax penalty for withdrawals prior to age 59 1/2 , according to a chart prepared by Jack Kenney, chairman, CEO and founder of Clearwater Financial Marketing, a business unit of InterSecurities, Inc., and an AEGON company. See the chart