I hope to retire in 2 years and have an annuity earning 7%. But I only work part time and need some cash. What’s my move?

Question: “I have an annuity and it made 7%. I only work part time so I could use some financing. I hope to retire in two years but I will need to withdraw part of it within a year. What options do I have? What is the appropriate expert to consult in this situation?”

Answer: The good news here is that you do have options, some just might be more costly than others. And consulting with a financial adviser who specializes in retirement income, like a retirement income certified professional, might help you figure out the best path forward. (You can use this free tool to get matched with fiduciary advisers from our ad partner SmartAsset, as well as CFP Board and NAPFA.)

You’ll need to understand what type of annuity you have and how it works before you figure out withdrawals. While some annuities have no upfront charges, most have back-end surrender charges that range from three to 15 years, says chartered financial consultant Dan White at Daniel A. White & Associates. “If your annuity is no longer in its surrender charge period, there is no penalty to take all of your money out.”

White also notes that “if the annuity is an IRA , all distributions will be taxable. If it’s not an IRA, only the gain will be taxable as ordinary income.” Both fixed and variable annuities can be held inside an IRA, allowing for tax-deferred growth, but you’ll want to have a pro help you move an annuity into an IRA to avoid any penalties.

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Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value