Can Annuities Be Cashed In? 
Generally , when you buy an annuity you 're going to keep it for the life of the contract . Annuities can be cancelled early , but you will likely have surrender charges and certain tax implications involved if you do . What kind of annuity you have may have different penalties for surrendering the annuity early . If you surrender the annuity before 59 1/2 , I believe you can face a 10 % federal tax penalty on the value of the annuity . You should definitely talk it over with your annuity agent before making any decisions so you know what may happen if you surrender the annuity early . I hope the information is helpful - please feel free to contact me for help or if you have any other questions . Thanks very much . 