An annuity surrender charge is a fee charged if you withdraw more than the free withdrawal amount during the surrender charge period. Surrender charge periods typically last 5-10 years. Surrender charges decrease over time. Most annuities allow a 10% free withdrawal per year without surrender charges.
Key Points
- Surrender charge: fee for withdrawing more than the free withdrawal amount
- Surrender charge period: typically 5-10 years
- Surrender charges decrease over time
- Most annuities: 10% free withdrawal per year without surrender charges
- An independent agent can help you find annuities with the most favorable surrender charge schedules