I am hoping not to touch those annuity profits unless I have a financial emergency that requires me to withdraw some. I was advised that I would pay big bucks if I withdraw from my annuity. The outlook for this annuity looks very positive. Can I ever withdraw some funds to by a car in cash, for example, or take out a new car loan? Thanks.
Once you turn 59 1/2, the funds from your annuity are able to be removed without any penalty to the IRS. You may still need to pay tax on any qualified funds that come out from your annuity, and you might have early surrender or withdrawal charges from the company (that should be described and defined in your prospectus). Typically companies permit you to withdraw all of your growth from your principal and a set percentage without penalty unless the funds have been in the account long enough that no surrender charges exist. Also if you ever annuitize the annuity and turn it into a periodic payment generator, there would be nothing to withdraw from that account if that ever takes place.
Hope that helps, and if you have any other questions, I would be happy to clarify further.
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