a 62 year old man owns a non-tax qualified variable annuity. if this indvidual makes a lump-sum withdrawal from the plan, this would:

If the 62 year old man makes a lump-sum withdrawal from the plan or tax structure, his investments would start incurring ordinary income taxes without attracting any other form of penalties. However, it has to be noted that prior to withdrawal of the lump-sum, his investments would grow without incurring income taxes.