Loans and Assignment Qualified
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) without 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.

On the other hand, loans against an IRA could generate income taxes and tax penalties on the entire value of the IRA.

In all cases, consumers should rely on their own tax advisors when contemplating the qualified market.