I just turned 56 and I retired 2 months ago. I was thinking about putting money into a aarp immediate annuity. I would receive monthly payments starting the next month.I would use Money from a ira that I have. My question is... since I am not 59 1/2, would I have to pay the 10% penalty on the monthly money I receive??? AARP says no but I cant find any concrete answer on this. I would also be pulling out of my 401 to supplement this. I can pull out of my 401 penalty free under the rule of 55 law. AARP charges no fee for this service and the same one at Fidelity charges 2% a yr... which can add up! Thanks for any opinions!!