It depends greatly on the type of annuity it is. Some have stiff penalties for early withdrawals. Others there are loopholes that financial experts can advise you about which can save you a lot of money and solve your current financial issues. Not only do you need to review your plan, including any rules, you also need to check with the current Federal Law about the type of annuity you have. Often, if you withdraw from your annuity before you are age 59 1/2, you can be required to pay the IRS an early 10% penalty for early withdrawal. But that isn't the end of it. You also may be subject to income tax on top of the penalty as well.