Ask the Advisor – Retirement Planning

I just discovered that my 403 (b) annuity includes surrender charges.
What should I do?

Often surrender fees are not clearly disclosed to the participant. Now that you have identified these fees, you have some choices.

1. You can stop contributing to the annuity and wait out the surrender period until it reaches 0% before cancelling.
2. You can choose to cancel the contract and pay the surrender fees. Then you can transfer your balance to a new 403(b) provider subject to the rules or provisions in your district's plan.
3. You can keep contributing to the annuity and cancel when the surrender period is up, provided the surrender period is based on the date of the contract and not on the premium payment dates.

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