Tip - How to Cash in an Annuity Early | eHow

Annuities are tax-deferred investments offered through insurance companies that have a contract term called a surrender period. You can cash out of an annuity during the surrender period, but may be assessed a penalty in doing so. In addition, if you are not yet 59-1/2 years old, you may be assessed a 10 percent tax penalty for cashing out early,...