• Why do you want to get rid of your annuity?
  Be sure that you want to surrender your annuity for the right reasons—and that you can’t correct the problem without surrendering your contract. For example, if you are not satisfied with your annuity’s performance results, you may wish to consider transferring your account balance to one or more other investment options that are available to you under the same annuity. This will help you to avoid any surrender charges that may apply if you get rid of your annuity.
  
• What are the surrender charges associated with your annuity?
   Nearly all annuities have surrender charges. (These surrender charges may also be called other things, such as redemption fees or exchange fees.) Bottom line, you need to consider how much it will cost you to surrender your annuity. (Your annuity contract provides you with the details concerning your surrender charges.)
  
  
• Can you switch to another annuity at the same company?
  Some companies will allow you to transfer to another one of their annuities—this is often called an internal replacement or exchange—without paying any fees. Since it is possible that your annuity provider offers other annuities with features you may prefer, you may wish to consider this option.
  
• Are there tax consequences associated with the surrender of your annuity? Yes, there may be tax consequences with surrendering your annuity.
  The Internal Revenue Service does allow for a tax-free exchange from one annuity to another (called a 1035 exchange), provided certain conditions are met. Be sure you consider the tax implications of your decision before proceeding.  Contact a tax-advisor for more specific information regarding your annuity.
  
  
• Can you make a withdrawal from your annuity?
  Many annuities will allow the owner to withdraw up to 10% of the account value each year without surrender charges. You may then invest the proceeds elsewhere.

This information has been provided for your benefit and is not intended or designed to be tax advice. Neither Prudential Retirement, nor any of its representatives, may give legal, tax, or investment advice.

The information outlined above is only a brief summary about annuity surrenders. Because this is a complicated issue, be sure to consult a financial professional if you’re considering surrendering an annuity.  Please also keep in mind that this information is related to an annuity that an individual purchases, not an “annuity plan” that might be available through your workplace.