Why is my annuity company charging me a high surrender tax?

Update: I am 61 yrs old & live in NYC. My balance would have been $6657.80, but after taking $ back for the loan the balance became $3286.25. The rep on phone said I would pay 20% tax on the latter $. They ended up charging me the 20% tax on the first amount. I contacted rep and she said she'll look into it and... show more I am 61 yrs old & live in NYC. My balance would have been $6657.80, but after taking $ back for the loan the balance became $3286.25. The rep on phone said I would pay 20% tax on the latter $. They ended up charging me the 20% tax on the first amount. I contacted rep and she said she'll look into it and get back to me. Is this right?
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