WITHDRAWALS
WITHDRAWAL
◘ Withdrawals may be made at any time.
However, the withdrawal may be subject to surrender charges and if done before age 59½ there will be a 10% IRS penalty. Some contracts allow an annual 10% withdrawal free of surrender charges.
◘ The owner may pre-authorize a systematic periodic withdrawal plan. The owner of the contract instructs the company to withdraw a percentage or a level dollar amount from the contract on a monthly, quarterly, semiannual, or annual basis.