An Overview of Annuities

There are penalties and surrender fees that are imposed upon most annuities by the insurance company itself as well as the government. So when you go to withdraw money for yourself, you will pay ordinary income tax on any amount of money that you do withdraw. If you die and you leave your annuity to anybody, when they withdraw the money, they will have to pay income tax  on that money too. Those are things that you have to understand about annuities over all.