Can I Take My Annuity as a Lump Sum?

Published July 20, 2019

Whether you can take your annuity as a lump sum depends on the kind of annuity you purchase, as well as when the annuity was purchased.

The following annuities offer the ability to take a lump sum:

  • Fixed annuities
  • Variable annuities
  • Indexed annuities

However, if you purchased the annuity within the last few years, you will incur a surrender charge when you withdraw. But, if you purchased more than 10 years ago and did not annuitize it, you typically do not incur a charge.

The following annuities generally do not offer the ability to take a lump sum:

  • Immediate annuities
  • Longevity annuities
  • Qualified Longevity Annuity Contracts

To speak with one of our annuity experts about taking your annuity policy as a lump sum, you can schedule a call here.

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Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.

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