Can You Cash Out Annuities?
12689 POINTSview profileTed RatliffOwner, SFS Associates,You can cash surrender Annuities however before you do so check with your tax adviser. If you surrender an annuity before age 591/2 you may be penalized. This can be substantial especially if it is a qualified plan. There may also be other tax issues involved. Annuities are designed for long term savings for retirement. While they are a sound safe way to accumulate money on a tax friendly basis, you must follow the rules. Even CD's have penalties for early withdrawals.Answered on June 15, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaYou can “cash out” your annuity and here are some of the ramifications of doing so. If you cash out your annuity (or surrender the annuity) and that surrender will trigger an ordinary income tax event on the gain in the policy. If you’re under age 59 ½ an additional 10% penalty will be assessed as well. If the annuity is a non-qualified annuity, the taxable event will only apply to the gain in the contract. If the annuity is a qualified annuity, the taxable event will apply to all the proceeds in the contract.Answered on June 15, 2013+01+1 this answer
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37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA deferred annuity can be surrendered at any time. Surrender charges, which are a percentage of the value of the contract, apply for a term specified in the annuity. Before surrendering an annuity make sure that you understand the tax consequences. If the annuity is an immediate annuity or has started distributing a lifetime stream of income, most companies will not allow the contract to be surrenderedAnswered on July 31, 2014flag this answer
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