Annuities are long-term contracts. Access rules vary depending on the type of annuity and when withdrawals are taken.
Surrender periods
Most annuities include a surrender period — a defined number of years during which withdrawals above a certain amount may trigger a surrender charge. Charges usually decline over time.
MYGAs as an example
A MYGA guarantees a specific interest rate for a defined period — often 3, 5, or 7 years. Because the rate is guaranteed for a set term, MYGAs typically include a declining surrender schedule during that period.
Most MYGAs also allow limited annual penalty-free withdrawals (often around 10% of the contract value). At the end of the term, the full value can generally be accessed without insurance-company surrender penalties. If no action is taken, the contract may renew into a new term at a new rate, sometimes with a new surrender schedule.
Always review the contract for free-withdrawal provisions, market-value adjustments (if any), and renewal terms before funding.