Can Deferred Annuities Be Surrendered? 
Almost every annuity can be surrendered . A deferred annuity frequently has a surrender charge . This charge is a percentage of the value of the annuity and normally reduces every year until it vanishes . There might be income tax consequences because the earnings inside the annuity have not been previously taxed . If the deferred annuity has started paying a lifetime income or other settlement to the annuitant , it is highly unlikely that the contract can be surrendered at that point . 