Most new annuity contracts have a provision called the free look period that gives the purchaser 10 to 30 days to consider the terms of the contract. You can find the information on first or a few first pages of your annuity contract, or you might ask your insurance company what your free look period was. It is important to know, because if you withdraw your money withing the free look period, there should not be penalties of any kinds. Otherwise, unfortunately, it considers as annuity distribution and subject to penalties and must be included in your income.
