We assume that you mean that you want to transfer money out of a particular fixed annuity. Before you consider doing this, one factor that you need to look at is surrender charges. These are fees charged by insurance companies for withdrawing money from an annuity within a specific number of years after purchase. Surrender charges can last from 6 to 12 years and generally go down over time.
Nevertheless, if you want to move your money now to another annuity, say one with lower fees and expenses, you might consider a "1035 Exchange." Named for a section of tax law, this option allows you to transfer money from one annuity to another without triggering taxes. There are specific rules to follow, however, so professional assistance is highly recommended. Without using a 1035 exchange, you may have tax implications: tax on the interest earned immediately upon account withdrawal and a 10% IRS penalty on withdrawn profits if you are under age 59½.
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