Can You Cash In Annuities? 
Non-qualified tax deferred annuities have to considerations when weighing the surrender or cashing out of the policy . The first is the surrender charge . During the early years annuities can have punitive surrender charges , so know the cost of liquidity before you purchase this product . The second item is taxes . All distributions of gain are taxed as ordinary income . Cashing in large policies can elevate you into one maybe even two higher tax brackets . 