To avoid owing penalties to the IRS, wait to withdraw until you are 59 ½ and set up a systematic withdrawal schedule. What is the free annuity withdrawal provision? Many, but not all, insurance companies allow you to withdraw up to 10% of your funds prior to the end of the surrender period.
At what age can you start taking payments on an annuity?
The typical age restriction is around 80. Many insurance companies will not allow you to purchase an annuity with an income rider until you are 50 or older.
What are the rules for withdrawing from an annuity?
Withdrawing While Avoiding Surrender Charges\n\n A penalty or a surrender fee, also known as a withdrawal, or surrender charge, may be charged if you withdraw funds from an annuity. However, most deferred annuities allow a percentage, typically 10 percent, that can be withdrawn each year without a penalty.
When can I withdraw my retirement annuity?
Retirement Annuities in South Africa are governed by the Income Tax Act, No. 58 of 1962 and access to these funds is strictly legislated. As a rule, these savings can only be accessed after the age of 55 when the retirement date is met. Even then, access is limited.