Ian and Isabella are in their mid-fifties and would like to help their daughter with a down payment on a house. They want to withdraw a portion, or possibly surrender, Ians entire nonqualified annuity in order to do so. Their representative should explain to them that a withdrawal from Ians annuity prior to age 59, would result in:

A. Ordinary income tax, a 10% IRS penalty applied to the entire withdrawal, and any applicable contractual charges.

B. Ordinary income tax, a 10% IRS penalty applied to the earnings withdrawn and any applicable contractual charges.

C. An IRS audit.

D. A and C only