annuities and penalties?

[bentley]

IF a portion of an ira is annuitized prior to age 59.5, IS that distribution subject to the 10% penalty if taken at age 57 ? I read contradictory reports.
This one from immediate annuities says it is not;

Early Withdrawal (Pre 59-½) Penalty Tax Exceptions and Annuities

Does anyone know for sure?

I currently still have 1.35 mill (after the meltdown) and am still working at age 56. (57 in a few months)
Thinking of buying an annuity with 300k (next year) to provide an income stream which combined with after tax savings will easily get us to age 59.5, and probably to age 62.
I'm just trying to educate myself a little prior to consulting a cpa.

Thoughts? Ideas? suggestions? I sure would like to ER sometime next year. At least drop back to three days a week.

Thanks in advance

b