When Can You Cash In Annuities?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Non-qualified tax deferred annuities are personal assets than can be liquidated by the owner of the policy. But there may be ramifications in doing so. These products have surrender charges and sometimes, as in MVAs, an interest rate reduction for terminating before the contract period is over. Liquidation will trigger an ordinary income tax event on all gain in the policy and a 10% additional penalty for cashing in the annuity before 59 1/2.

   Answered on September 6, 2013

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