Can Annuities Be Cashed In? 
That is a great question ! One of the biggest reasons why an annuity is not suitable for everyone is the fact that your money is tied up for a long period of time . That can be an issue , if you are prone to cash flow problems . You can cancel it , but you will lose a considerable chunk of it to taxes and fees , and may even bump yourself up a tax bracket for the year you cancel the contract . Please talk to your agent , or a tax attorney before you cancel the contract . A better solution , and I use the word `` better '' guardedly , is to take whatever free withdrawal amount that is available for you , if you are in a cash crunch . Thismay have an effect on what your annuity earns and pays out , so please consult with your agent first.A better solution yet may be to borrow from your life insurance policy , it 's tax free , and will have less consequences . Please feel free to contact me , if you 'd like to discuss this privately , okay ? Thank you for asking ! 