How To Cash Out A Tax Deferred Annuity? 
A tax deferred annuity can be surrendered at any time . The amount of money returned will equal the value of the annuity minus any surrender charges . Taxation will be applied depending on the nature of the annuity . If it is a qualified annuity the distribution will be treated as ordinary income and depending upon your age could be subject to a surcharge . If it is a non-qualified annuity it will be taxed to the extent that the value exceeds the premiums paid . This could also be subject to the surcharge . 