If an annuitant cancels her variable annuity during the accumulation period, what might she be required to pay?

When an annuitant cancels her variable annuity during the accumulation period, she may be required to pay a surrender charge. This fee compensates the insurance company for the costs associated with setting up the annuity and for the potential loss of investment income. Surrender charges are typically a percentage of the amount withdrawn and can decrease over time, depending on the terms of the annuity contract.

While other fees, such as a penalty to the IRS for early withdrawal, additional management fees, or administrative fees, may be factors in other scenarios, they do not specifically apply to the act of canceling a variable annuity during the accumulation phase. The primary financial penalty in this context is indeed the surrender charge, making it the most relevant answer.