No. of Recommendations: 1
If the annuity carries charges for early withdrawal you may actually do better to leave it alone until those charges go away. If you have had most of the annuity for 4 years of college, and your dad has contributed more money along the way, those more recent contributions may carry substantial early withdrawal fees.
If this is a variable annuity and quite aggressively invested, you may find it doesn't really do badly.
So get a little more information before you jump out.
The mechanism for cashing it out is clear: you call up the insurance company and they send you the paperwork.
Your dad paid for a type of tax shelter. Not the best, but after taxes and 10% penalty on earnings for withdrawing before age 59 1/2, although that is not the choice you would have made, your dad made the choice and it may be better to accept it rather than looking for a bailout immediately.
Just don't pay variable annuity management fees and be invested in money markets!
Best wishes, Chris
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.