<prompt> Human: Im cashing out my annuity of 40k or so to put as a down payment on my first home and I need some advice. What rate will I be taxed at? Im wondering if I should elect to have some withholdings from this due to the tax burden Ill see at the end of the year. I currently only make 30k annually so I always get a return but my concern is if this is counted as income that Im going to owe a lot.Im already incurring a 10 penalty for withdrawing the investment so Im worried that I end up losing a lot. Fact is this is crucial to making a solid down payment on the house thus lowering my monthly payments.  <response>: Dont do it man, dont do it. 