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 have to considerations when weighing the surrender or cashing out of the policy. The first is the surrender charge. During the early years annuities can have punitive surrender charges, so know the cost of liquidity before you purchase this product. The second item is taxes. All distributions of gain are taxed as ordinary income. Cashing in large policies can elevate you into one maybe even two higher tax brackets.

   Answered on August 1, 2013

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