Can Deferred Annuities Be Surrendered? 
Yes , deferred annuities can be surrendered . There will be a surrender charge if you surrender your annuity in the first years of the policy -LRB- usually 5 to 8 years , whatever is stated in your contract -RRB- . And you must wait to surrender it until after age 59.5 to avoid a 10 % penalty . You can switch annuities in a 1035 exchange without paying taxes on the surrender value . 