When Can You Cash In Annuities? 
Non-qualified tax deferred annuities are personal assets than can be liquidated by the owner of the policy . But there may be ramifications in doing so . These products have surrender charges and sometimes , as in MVAs , an interest rate reduction for terminating before the contract period is over . Liquidation will trigger an ordinary income tax event on all gain in the policy and a 10 % additional penalty for cashing in the annuity before 59 1/2 . 