Surrender charges, which are fees assessed for withdrawing funds during the surrender period, are typically waived for the withdrawal of up to 10 percent of the annuity value per year.
How do you avoid an annuity surrender charge?
The best way to avoid surrender charges is to wait until the surrender charge period has expired. This is typically several years after you purchase the annuity.
How much can you withdraw from an annuity without a surrender charge?
Many insurance companies allow annuity owners to withdraw up to 10% of their account value without paying a surrender charge.