Series 7 - General Securities Representative Exam
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Which of the following is NOT TRUE of variable annuities?
There is no guarantee of specific rate of return
A
It is regulated under the Securities Act
B
There are no penalties for early withdrawals
C
Earnings grow tax deferred
D
Explanations
There are 10 percent tax penalties for withdrawals made before 59 1/2. In additional there are potential surrender charges