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hastings4455 -

You said <<Someone told me that "two-tier annuities" -- in which the annuity company will charge high fees if the annuity holder wishes to transfer money out, instead of annuitizing the contract -- are no longer sold. However, another contact claims they are still being sold in most states. Can anyone give me a definitive answer? Thanks.>>

I'm not sure what you mean about "two tier"... If you are referring to "surrender charges", than you are (partially) correct. Many annuity contracts have a provision that will penalize the account owner for a early withdrawal (within 7 years), and it's waived if you annuitize the balance. There often is a provision to make a penalty-free partial withdrawal, however! What else would you like to know?

Regards, PP
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