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?
- STEVEN FLv 77 months ago
Without knowing the EXACT annuity you purchased, we can't even tell you IF you can cash it in.
- JudyLv 77 months ago
read your contract. It varies.
- EvaLv 77 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.
- The TaxpayerLv 77 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.
- How do you think about the answers? You can sign in to vote the answer.
- NALv 77 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.