Annuity Early Withdrawal

Seventeen years old, my father introduced a variable annuity with Nationwide Insurance for my newborn daughter to help her college expenses. I was appointed the custodian (until 18), and the beneficiary. Now I want to take that money and use it for their college expenses, but it seems that the agreement it will incur a penalty of 10% of the withdrawal before age 59.5. Is there a way to avoid this penalty by using the funds for college?

You can avoid 10% if you leave a party in the account. But you can always pay taxes.

Talk to your banker can borrow against the inuity. You will be of interest, but it can work in your favor over the long term.

You avoid it by not attacking.