Many policyholders want to know whether or not annuities can be cashed out. And the answer is yes, you can definitely cash out from an annuity but be prepared for penalties. If you cash out early now you may encounter a withdrawal or surrender charge. And these are monetary terms describing a penalty for taking money out of your annuity early. The IRS will also typically charge a 10% early withdrawal penalty tax for taking money out of annuity before you reach the age of 59.5. Additionally, the typical time frame to withdraw is approximately four weeks, but this can vary depending on the terms of your contract and the company you are working with. So in short, while nothing will prohibit you from withdrawing money from an annuity early expect there to be some consequences.

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