I rolled my 401K into an annuity but now I'm thinking to use that money to renovate my house. How much will I lose if I cash in the annuity?

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  • 7 months ago

    Without knowing the EXACT annuity you purchased, we can't even tell you IF you can cash it in.

  • Judy
    Lv 7
    7 months ago

    read your contract. It varies.

  • Eva
    Lv 7
    7 months ago

    Between the penalty (if you're under 59 1/2) the tax and possible surrender fees on the annuity, you could lose as much as 40%. With interest rates so low, you might better get a home equity loan or line of credit or do a refi.

  • 7 months ago

    Lot's and lot's. Never buy annuities. They are very high commission for the sellers. Whole companies have developed, like JG Wentworth, for people who have annuities. They're the Time Share of the financial world.

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  • NA
    Lv 7
    7 months ago

    Many annuities have a surrender fee.  That would be on top of income taxes and, if you are under 59.5 years of age, a 10% penalty.

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