Can I Borrow From My Annuity To Buy A House • Verified & Working

: If you choose to withdraw money instead of borrowing it, you might be hit with heavy surrender charges (sometimes as high as 7–20% ) if you haven't held the contract long enough. Exceptions for First-Time Homebuyers

: If you are under age 59½ and your loan is reclassified as a distribution, you could face an additional 10% IRS penalty . can i borrow from my annuity to buy a house

The IRS may waive the 10% early withdrawal penalty for first-time homebuyers (up to a ). However, you will still owe regular income tax on the amount withdrawn. : If you choose to withdraw money instead

Yes, you can often borrow from your annuity to buy a house, but it is a complex move with significant trade-offs. However, you will still owe regular income tax

: Many experts consider borrowing from an annuity a "last resort" due to the high cost of fees and lost compound interest.

: While your money is "borrowed," it isn't earning the interest or market returns it would have otherwise, which can shrink your retirement nest egg.