A free withdrawal is the amount you can take out of an annuity each year during the surrender period without owing a surrender charge or market value adjustment. It is commonly capped at 10% of your account value per year.
In plain terms: The slice of your annuity you can take out each year with no exit fee.
Think of it like the penalty-free ATM limit on an account that otherwise locks up your money. It gives you a release valve for real-life needs without breaking the contract. Axonic's Incline Advisory 2 allows a 10% free withdrawal as of July 30, 2026. On a $100,000 balance, that is up to $10,000 a year you could access with no surrender charge, though income taxes and the IRS early-withdrawal penalty can still apply to gains.
The free withdrawal is your built-in flexibility. If you expect to need small, steady sums, confirm the free withdrawal percentage before you buy, and keep withdrawals within it to avoid charges.
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