Early withdrawal of funds from an annuity may result in IRS penalties and

Question

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Early withdrawal from an annuity may result in surrender fees, which are charged by the insurance company to compensate for the loss of revenue they would have earned if the annuity had remained intact for a specified period. In addition to surrender fees, the IRS may also impose penalties on early withdrawals from annuities, which could result in additional charges or fees. However, there is no such thing as bailout fees, 12(b)fees, guarantee fees, or discontinuance insurance associated with early withdrawal from an annuity.

Early Withdrawal of Funds from an Annuity May Result in IRS