Loans
Some annuities offer a loan provision for the Qualified Tax Sheltered Annuity 403(b) market. In general, owners can borrow up to 50% of the cash surrender value (but not to exceed $50,000) with incurring income taxes or surrender charges. Naturally, if a loan already exists, the $50,000 limit is reduced. In order to avoid paying taxes on the loan, regular payments of principal and interest should be made over a repayment period not to exceed age 70 and the loan must be repaid within 5 years unless the loan is for a primary residence.