I have a 49-yr old prospect who has $1.5 million to invest. He wants immediate income on some of this money. I've told him that if he takes a deferred annuity and wants to start the income stream before age 59 1/2 that he'll have a 10% penalty in addition to having it (the gain) taxed as ordinary income. I'm curious if there is any way an individual can legally avoid this 10% penalty? I've also presented a SPIA to him.Thanks.