: If you are under age 59½ and your loan is reclassified as a distribution, you could face an additional 10% IRS penalty .
The IRS may waive the 10% early withdrawal penalty for first-time homebuyers (up to a ). However, you will still owe regular income tax on the amount withdrawn.
: If your provider doesn’t offer direct loans, you might be able to use the annuity as collateral for a loan from a bank or third-party lender.
: Many experts consider borrowing from an annuity a "last resort" due to the high cost of fees and lost compound interest.
: Like any loan, you must pay back the principal plus interest. You may also face administrative fees from the provider. Risks and Consequences
