Distributions taken prior to annuitization are generally considered to come from the gain in the contract first. If the contract is tax-qualified, generally withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59 1/2, may be subject to an additional 10% federal tax penalty.
Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details consult your attorney or tax advisor.
Variable annuities are long-term investments designed for retirement purposes. You should carefully consider the investment objectives, risks, charges and expenses of the investment options before purchasing a contract or investing money. These contracts have limitations and are sold by prospectus only. The prospectus contains important information about the annuity contract, including fees and charges, investment options, death benefits, and annuity payout options. Optional income riders carry additional costs and may have limitations or restrictions. To obtain a prospectus or the underlying portfolio prospectuses, please contact your Allstate Personal Financial Representative. Please read the product prospectuses carefully before purchasing a contract or sending money. Guarantees offered are subject to the claims-paying ability of the issuing company.
Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA and SIPC, Main Office: 2920 South 84th Street, Lincoln, NE 68506, 877-525-5727. Check the background of this firm on FINRA's BrokerCheck website.