Kentucky
Understand your withdrawal options and avoid penalties
Free withdrawals • Surrender charges • Tax implications
2,147 annuity owners got withdrawal guidance to avoid penalties this year
Most annuities have 3-10 year surrender periods with declining penalties for early full withdrawal
Most contracts allow 10% annual penalty-free withdrawals even during surrender period
Withdrawals before age 59½ may face 10% IRS penalty plus ordinary income tax on gains
Navigate annuity withdrawals without penalties or unexpected taxes
Most annuities allow withdrawing up to 10% of account value annually without surrender charges, even during the surrender period.
Required Minimum Distributions from qualified annuities (IRA annuities) are always penalty-free regardless of surrender period.
Set up automatic monthly/quarterly withdrawals within the penalty-free amount for regular income.
Move to a different annuity tax-free if your current annuity doesn't meet your needs, without full surrender.
Typical penalty schedules - your contract may vary
| Contract Year | Typical Penalty | Penalty-Free Amount |
|---|---|---|
| Year 1-2 | 7-10% | 10% of value |
| Year 3-4 | 5-7% | 10% of value |
| Year 5-6 | 3-5% | 10% of value |
| Year 7+ | 0-2% | Full value |
Get expert guidance on accessing your annuity funds tax-efficiently