You are able to ask to surrender the annuity. When you have owned the annuity for much less than seven years or so, you might need to spend a surrender charge. That charge can begin at about 7% in the event you pull out within the initial year you personal the annuity, and after that it usually declines by 1 percentage point a year till it disappears following seven or eight years. You also may have to spend earnings tax on all of the investment earnings inside your annuity, and if you're younger than 59 ? you usually will probably be hit having a 10% early withdrawal penalty courtesy from the IRS.
Alternatively, you are able to opt to transfer your cash to an additional annuity in what's referred to as a 1035 exchange. The surrender charge, if any, nonetheless applies, but you will not incur any tax or penalty. But this technique has some dangers, as you may need to spend an additional sales commission, as well as your surrender clock may also begin again.