Qlac annuity: US Annuity Rules and Rates
The US Annuity Rules and Rates carries 6 published figures read from 2 sources' own pages; the 5 published figures given by rule run from 5 to 30 percent, read 17 October 2026.
5 of the 18 named sources read in full publish a figure; 13 publish none, read 17 October 2026.
By rule and limit
| Breakdown | Median | Range | Sources |
|---|---|---|---|
| rule5% additional tax on certain early distributions from a deferred annuity | 5% | 5 to 5% | 1 |
| rule30% withholding on railroad retirement SSEB tier 1 benefits | 30% | 30 to 30% | 1 |
| ruledefault withholding on a nonperiodic distribution | 10% | 10 to 10% | 1 |
| ruleestimated tax adjusted gross income threshold | 150,000USD | 150,000 to 150,000USD | 1 |
| rulefree-look cancellation period | 10day | 10 to 10day | 1 |
| ruletypical starting surrender charge on an annuity withdrawal | 7% | 7 to 7% | 1 |
| rule10% federal tax penalty on early annuity withdrawals | 10% | 10 to 10% | 1 |
| rulevariable annuity surrender period (eight years or more) | 8year | 8 to 8year | 1 |
| limitupper bound of starting surrender charge, declining to zero over about seven or eight years | 20% | 20 to 20% | 1 |
| limitupper end of typical indexed-annuity surrender period (six to ten years or longer) | 10year | 10 to 10year | 1 |
| limitupper end of usual free-look cancellation period (10 to 30 days) | 30day | 30 to 30day | 1 |
Every figure, with its source
One row per published figure: the figure as the source's own page publishes it, the page, and the day it was read. A figure that is not on a page we read is not on this one.
| Source | Figure | Breakdown | Read |
|---|---|---|---|
| IRS Publication 575 - Pension and Annuity Income | 150,000USD | estimated tax adjusted gross income threshold | 2026-10-17 |
| IRS Publication 575 - Pension and Annuity Income | 30% | 30% withholding on railroad retirement SSEB tier 1 benefits | 2026-10-17 |
| SEC Investor.gov - updated investor bulletin: variable annuities | 30day | upper end of usual free-look cancellation period (10 to 30 days) | 2026-10-17 |
| US Department of Labor / EBSA - innovations and trends in annuities (QLACs) | 20% | upper bound of starting surrender charge, declining to zero over about seven or eight years | 2026-10-17 |
| IRS Publication 575 - Pension and Annuity Income | 10% | default withholding on a nonperiodic distribution | 2026-10-17 |
| SEC Investor.gov - updated investor bulletin: variable annuities | 10day | free-look cancellation period | 2026-10-17 |
| US Department of Labor / EBSA - innovations and trends in annuities (QLACs) | 10% | 10% federal tax penalty on early annuity withdrawals | 2026-10-17 |
| SEC Investor.gov - updated investor bulletin: indexed annuities | 10year | upper end of typical indexed-annuity surrender period (six to ten years or longer) | 2026-10-17 |
| FINRA - annuities (investor information) | 8year | variable annuity surrender period (eight years or more) | 2026-10-17 |
| US Department of Labor / EBSA - innovations and trends in annuities (QLACs) | 7% | typical starting surrender charge on an annuity withdrawal | 2026-10-17 |
| IRS Publication 575 - Pension and Annuity Income | 5% | 5% additional tax on certain early distributions from a deferred annuity | 2026-10-17 |
The sentence each figure was read from (11)
- IRS Publication 575 - Pension and Annuity Income, read 2026-10-17:
If your adjusted gross income for 2025 was more than $150,000 ($75,000 if your filing status for 2026 is married filing separately), substitute 110% for 100% in (2) above.
- IRS Publication 575 - Pension and Annuity Income, read 2026-10-17:
tax on your SSEB portion of tier 1 benefits at a 30% rate, unless exempt or subject to a lower treaty rate.
- SEC Investor.gov - updated investor bulletin: variable annuities, read 2026-10-17:
You may cancel your contract within a short period (usually 10 to 30 days) of receiving it without a penalty fee called a surrender charge.
- US Department of Labor / EBSA - innovations and trends in annuities (QLACs), read 2026-10-17:
20%) and declines yearly until it reaches zero, typically around seven or eight years
- IRS Publication 575 - Pension and Annuity Income, read 2026-10-17:
Unless you choose no withholding, the withholding rate for a nonperiodic distribution (a payment other than a periodic payment) that isn’t an eligible rollover distribution is 10% of the distribution.
- SEC Investor.gov - updated investor bulletin: variable annuities, read 2026-10-17:
You may cancel your contract within a short period (usually lasting at least 10 days) of receiving it without a surrender charge.
- US Department of Labor / EBSA - innovations and trends in annuities (QLACs), read 2026-10-17:
capital gains rate. Furthermore, withdrawals are subject to a 10% federal tax penalty
- SEC Investor.gov - updated investor bulletin: indexed annuities, read 2026-10-17:
The surrender period is a set period of time that typically lasts six to ten years, or even longer, after you purchase the annuity.
- FINRA - annuities (investor information), read 2026-10-17:
Variable annuities can feature surrender periods of eight years or more.
- US Department of Labor / EBSA - innovations and trends in annuities (QLACs), read 2026-10-17:
This “surrender charge” or “withdrawal charge” usually starts at around 7% of the value of the withdrawal (but can reach as high as
- IRS Publication 575 - Pension and Annuity Income, read 2026-10-17:
5% rate on certain early distributions from deferred annuity contracts.
Read in full, publishes no figure
13 named sources were read in full on the dates shown and print no usable figure. They are counted, never filled in.
- IRS - about Publication 575, read 2026-10-17: read in full and no accepted figure on the page
- IRS Publication 939 - General Rule for Pensions and Annuities, read 2026-09-12: every candidate on the page was refused
- IRS - about Publication 939, read 2026-09-12: read in full and no accepted figure on the page
- IRS - Topic no. 411, pensions: the General Rule and the Simplified Method, read 2026-09-26: read in full and no accepted figure on the page
- IRS - required minimum distributions (retirement topics), read 2026-09-12: every candidate on the page was refused
- IRS - additional resources for plan participants, read 2026-09-12: read in full and no accepted figure on the page
- FINRA - 2025 annual regulatory oversight report, annuities, read 2026-10-10: every candidate on the page was refused
- NAIC - annuity suitability and best interest standard, read 2026-10-17: every candidate on the page was refused
- NAIC CIPR - annuity suitability and best interest standard, read 2026-10-10: read in full and no accepted figure on the page
- NOLHGA - product coverage FAQs (the guaranty-association limits), read 2026-09-12: read in full and no accepted figure on the page
- Medicaid Planning Assistance - eligibility by annuity, read 2026-09-12: every candidate on the page was refused
- IRS Publication 939 (PDF), read 2026-09-20: every candidate on the page was refused
- FINRA - the complicated risks and rewards of indexed annuities, read 2026-10-10: every candidate on the page was refused
Methodology
Every row is a verbatim sentence read from the named source's own page through our fetch service on the date shown, hash-pinned to the stored read (the sha of the page's visible text; the raw page is mirrored to R2).
5 of the 18 named sources that could be read published a usable figure; 13 published none and are recorded as not published, never filled in; 0 could not be read (blocked, dead or unreachable) and count nowhere.
The headline figures (median, minimum, maximum, quartiles) are over ONE figure per source for each breakdown it prices, in % (a source's median where its page yielded several accepted sentences for one breakdown), so a page that gives figures for several breakdowns gives one for each and N counts 6 figures, never sentences; 108 candidate sentence(s) were refused by a reviewer with the reason recorded.
The fuller derivation this dataset is chartered to grow into (not yet what the figures above are; they are each source's own published figure as read): one row per US product per rule and limit, quoted verbatim from the federal authority with its effective year - the QLAC premium limit and the age-85 latest starting date under the RMD regulations, the General Rule and Simplified Method for taxing annuity income, the 5% additional tax on certain early distributions from deferred contracts, the participation rate / cap rate / surrender-charge mechanics of an indexed contract, the free-look period, the best-interest standard a recommendation must meet, the guaranty-association present-value limit per contract, and the Deficit Reduction Act conditions a Medicaid-compliant annuity must satisfy.
The DERIVATION is the comparison nobody publishes: for one pot, what each product's stated mechanics actually produce - a cap rate of 5% against an index return of 10% credits 5%, a participation rate of 75% against 10% credits 7.5% - beside the guaranteed alternative, with the state limit that would apply if the carrier failed.
108 candidate sentences on these pages were refused by a reviewer; each refusal and its reason is recorded in the review ledger.
Sources (18)
- IRS Publication 575 - Pension and Annuity Income(the publisher's own terms; quoted for reporting and comment)
- IRS - about Publication 575(the publisher's own terms; quoted for reporting and comment)
- IRS Publication 939 - General Rule for Pensions and Annuities(the publisher's own terms; quoted for reporting and comment)
- IRS - about Publication 939(the publisher's own terms; quoted for reporting and comment)
- IRS - Topic no. 411, pensions: the General Rule and the Simplified Method(the publisher's own terms; quoted for reporting and comment)
- IRS - required minimum distributions (retirement topics)(the publisher's own terms; quoted for reporting and comment)
- IRS - additional resources for plan participants(the publisher's own terms; quoted for reporting and comment)
- SEC Investor.gov - updated investor bulletin: indexed annuities(the publisher's own terms; quoted for reporting and comment)
- SEC Investor.gov - updated investor bulletin: variable annuities(the publisher's own terms; quoted for reporting and comment)
- FINRA - annuities (investor information)(the publisher's own terms; quoted for reporting and comment)
- FINRA - 2025 annual regulatory oversight report, annuities(the publisher's own terms; quoted for reporting and comment)
- NAIC - annuity suitability and best interest standard(the publisher's own terms; quoted for reporting and comment)
- NAIC CIPR - annuity suitability and best interest standard(the publisher's own terms; quoted for reporting and comment)
- NOLHGA - product coverage FAQs (the guaranty-association limits)(the publisher's own terms; quoted for reporting and comment)
- Medicaid Planning Assistance - eligibility by annuity(the publisher's own terms; quoted for reporting and comment)
- IRS Publication 939 (PDF)(the publisher's own terms; quoted for reporting and comment)
- US Department of Labor / EBSA - innovations and trends in annuities (QLACs)(the publisher's own terms; quoted for reporting and comment)
- FINRA - the complicated risks and rewards of indexed annuities(the publisher's own terms; quoted for reporting and comment)
Cite or embed this figure
Cite or embed this figure
The US Annuity Rules and Rates carries 6 published figures read from 2 sources' own pages; the 5 published figures given by rule run from 5 to 30 percent, read 17 October 2026.
5 of the 18 named sources read in full publish a figure; 13 publish none, read 17 October 2026.
US Annuity Rules and Rates, rule 5% additional tax on certain early distributions from a deferred annuity: median 5 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule 30% withholding on railroad retirement SSEB tier 1 benefits: median 30 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule default withholding on a nonperiodic distribution: median 10 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule estimated tax adjusted gross income threshold: median 150,000 USD across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule free-look cancellation period: median 10 day across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule typical starting surrender charge on an annuity withdrawal: median 7 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule 10% federal tax penalty on early annuity withdrawals: median 10 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, rule variable annuity surrender period (eight years or more): median 8 year across 1 source, read 17 October 2026.
US Annuity Rules and Rates, limit upper bound of starting surrender charge, declining to zero over about seven or eight years: median 20 percent across 1 source, read 17 October 2026.
US Annuity Rules and Rates, limit upper end of typical indexed-annuity surrender period (six to ten years or longer): median 10 year across 1 source, read 17 October 2026.
US Annuity Rules and Rates, limit upper end of usual free-look cancellation period (10 to 30 days): median 30 day across 1 source, read 17 October 2026.
Cite as: "Corp Tax Calculator US Annuity Rules and Rates", updated 2026-10-19, https://corptaxcalculator.co.uk/datasets/us-annuity-rules-and-rates/.
Download the CSV (11 rows, computed 2026-10-19)