Security benefit annuity contract withdrawal request 2025

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You can cancel your annuity at any time. However, you may have to pay an early cancellation fee known as a surrender charge. The federal government will also penalize you if you cancel your annuity before you reach age 59. Your annuity contract should have its surrender charges explained in the contract itself.
You may model or request a withdrawal by selecting the Model a Withdrawal option on the Loans Withdrawals tab. Sign in to your account. Select mutual funds option on dashboard. Select the Loans Withdrawals tab.
Typically around 7% of the withdrawal amount if taken before a defined period of time usually 5 to 7 years. The penalty percentage usually decreases yearly until it reaches zero. There may be a 10% penalty for annuity owners who surrender their contract prior to the age of 59, plus income tax on any earnings.
4 ways to get out of an annuity Pay the surrender charge. Most annuity companies allow you to cash out, or surrender, the contract for its current value, or withdraw a portion of the accumulated funds before income payments begin. Withdraw options. 1035 exchange. Sell a portion of your payments.
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