Annuities
4 months ago
Annuity 'free withdrawal' provisions — can I access my money without surrender charges?
15
My annuity contract says I can withdraw 10% of the account value annually without surrender charges. Does this mean I can take out 10% each year penalty-free (from the insurance company's perspective)? I understand I'd still owe income tax on the gains. If I take the free withdrawal, does it reduce my income base for future income rider calculations? Are there any hidden consequences?
DR
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