She Wanted Out of Her $250,000 Annuity at 71. The Surrender Charge Was 7%, and the IRS Taxed Every Dollar of Gain Before She Saw a Dollar of Principal

Cashing out a deferred annuity at age 71 can impose two separate, compounding costs before the retiree receives proceeds. The article highlights that IRS ordering rules determine which charge applies first, creating an unexpected tax burden for annuity holders. No specific dollar amounts, tax rates, or policy changes were provided.