Can money be withdrawn at any given time?
Yes, but there may be contract charges, taxes, and penalties. Most annuities will impose a withdrawal or surrender charge for withdrawals made from an annuitys account value at least for the first few years. (See the following question.) However, many annuities will allow a certain percentage of the annuitys account value (usually up to 10%) to be withdrawn each year without the imposition of any contract charges. In addition to these charges, at least a part of any withdrawal usually will be taxable as income, and thus subject to federal income taxes (and perhaps state income taxes as well). Finally, if part of your distribution is includable in your income and you are under age 59 when you make the withdrawal, federal income tax law imposes an additional 10% penalty in addition to regular income taxes. If you think that these taxes and penalties may apply to you, you should consult your tax advisor before you take any withdrawal to see how it will affect your tax situation.
