Re:
If it's retirement dollars, leave it and let it be. Put it in the most aggressive index and let it ride.
There's no way out around the surrender fees, and you may not have income tax gains, depending on the size of the surrender charge.
You could get out and use a bonus annuity to do that, but it won't likely offset it, and you'll be locked in again beyond 9 years, even if it is a variable annuity.
Any transference beyond 10% results in a surrender fee.
Any withdrawal prior to 59.5 results in income taxes (on the gain) , 10% pre retirement penalty and the surrender fee.
FYI, gains in annuities are taxable as income NOT capital gains, because they are tax-deferred investments. The only time taxation on them is favorable is when you annuitize them, you get an exclusion ratio, where the whole withdrawal is not taxable. Some is contribution and some is gain.
They aren't BAD investments. People who are 50 and invested right now in them are sleeping soundly. Everyone with retirement dollars in the markets and have yet to figure out what to do and are 50 are probably screwed. If they hadn't pulled, there's no sense on doing so. If they did, maybe they got lucky, but they sure won't know where to put it, or when to put it back. Indexed annuities are good for set it and forget plans that rise now and then with occasional rises in the markets.
But if you're looking to get out, your best bet is to wait until the surrender is up. Of all investments with surrenders, it has the highest. There's no solution unless you actually can prove you were mislead or mis-sold, whereby you recoup fat monies through the lawsuit. If its age-inappropriate and was properly explained, you'd have a good case.
