The earnings portion of a withdrawal that you don't use for qualified higher education expenses is subject to state and federal taxes and a 10 percent federal tax penalty. (my529.org)
If your clients withdraw money for something other than qualified higher education expenses, they will owe federal income tax and may face a 10 % federal tax penalty on earnings. (putnam.com)
There is a 10 percent federal tax penalty if you withdraw money from your annuity before age 59 1/2 for reasons other than death or disability (similar to the tax penalty for premature withdrawals from IRAs). (insure.com)