Products第 21 / 110 题
A surrender charge on a deferred variable annuity is best described as:
a.A fee charged annually for as long as the contract is held
b.A penalty imposed by the IRS on withdrawals before age 59 1/2
c.A contractual charge on early withdrawals that typically declines each year and eventually disappears
d.A charge deducted from every purchase payment before it is invested
解析
The surrender charge is the insurance company's way of recovering distribution costs if the owner withdraws money during the early contract years, and the schedule steps down annually until it reaches zero. It is not an annual fee on all assets and it is not the IRS penalty, which is a separate 10% tax on premature distributions. Variable annuities generally have no front-end sales load deducted from deposits.
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