Choose the CORRECT statement regarding annuities.

A$.$ All distributions will be subject to income tax in the year received.

B$.$ The exclusion ratio applies to all periodic payments from an annuity.

C$.$ Because only insurance companies issue variable annuities, they are not considered securities$.$

D$.$ Annuitants may start distributions from an annuity before age $\frac{591}{2}$ without incurring tax penalties.