Some annuity withdrawal rules as of 2015 include a 10 percent withdrawal penalty for individuals who are younger than 59 1/2 and tax-free rollovers, according to the Internal Revenue Service. Most of the rules have exceptions, so individuals should carefully review the IRS website for a full list of withdrawal rules.
For the most part, individuals will pay a withdrawal penalty unless they meet certain conditions, states the CNN Money website. Individuals who withdraw before 7 years may need to also pay a surrender charge, and those who withdraw before age 59 1/2 will need to pay a 10 percent penalty, as well as income tax on the funds.
If individuals decide to rollover funds rather than withdraw, they will likely be tax-free, states the IRS website. Visit the IRS website for more information.