Can I Transfer An Annuity Without Penalty?

Shawn Plummer

CEO, The Annuity Expert

Transferring an annuity without incurring a penalty largely depends on whether you are still within the surrender period of your current annuity contract.

  1. Surrender Period: This is a specified period during which you may face penalties for withdrawing funds or transferring the annuity. These penalties are known as surrender charges.
  2. After Surrender Period: If you have completed the surrender period, you can usually transfer your annuity without penalty. However, it’s important to review your contract for any specific terms or conditions that might apply.
  3. Considering a Bonus Annuity: If you are still within the surrender period but want to transfer your annuity, consider a bonus annuity. A bonus annuity can offer an upfront bonus that might help offset any surrender penalties. However, it’s crucial to carefully evaluate the terms of the bonus annuity, as they may have higher fees or different restrictions.

Annuity Transfer Options

StatusOptionPotential PenaltyNote
Within Surrender PeriodStay or Transfer with PenaltyYesEarly transfer might incur surrender charges.
After Surrender PeriodTransfer without PenaltyNoFree to transfer after the surrender period without penalty.
Within Surrender PeriodTransfer to Bonus AnnuityVariesA bonus annuity may offset surrender penalties but comes with its own terms.

Conclusion

Transferring an annuity requires careful consideration of your current annuity’s surrender period. If you are outside this period, you can transfer without penalty. If you are still within the surrender period, a bonus annuity might offset the penalties, though it’s essential to understand the new annuity’s terms. Review your current contract and consult with a financial advisor for tailored advice. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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