Part 1: A premature withdrawal from an annuity

A) is any withdrawal prior to the date the contract is scheduled to be annuitized.

B) can trigger a tax penalty if the distribution is not over the annuitant's lifetime.

C) can be used to avoid the tax that would apply if the contract is annuitized.

D) always results in the imposition of a surrender charge by the insurer.

Part 2: In planning for retirement, it is reasonable for most people to assume that

A) social security benefits will provide most of the income required.

B) the social security system will continue, but possibly on a modified basis.

C) a major part of the retirement income need will come from employment.

D) taxes will not be a significant expense.