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My husband bought an annuity many years ago (when he was younger and didn't understand much about investing...). We're now trying to get rid of it. I don't believe that there is a surrender charge because he has held the annuity much longer than the seven year time period in which surrender charges are applicable according to the contract. The annuity appears to be tax deferred and he hasn't paid any taxes on the interest it has earned over the years. He is age 48. The last statement shows the value of the annuity being approximately $21,000.

Our Questions:

1) How does he get his money out of this "investment"?
2) Will he pay a penalty for making a withdrawal since he is under age 59.5?
3) Is there any way to avoid the penalty, e.g., rolling the funds over into a self-directed IRA?
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