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What fees are you paying for the annuity? Usually there is:
-a fixed-dollar annual fee
-a percentage taken out each year for "mortality and expense risk"
-a percentage taken out each year for "management fee"
-a percentage taken out each year for "investment advisory fee"
-perhaps other fees

In most cases, annuities have very high fees compared to other investments. That's one of the reasons for their generally subpar performance.

With an IRA, you have control of how the money is invested. You can pick a low-fee investment to go in your IRA.

If I were in your place, I'd forget the annuity and contribute to the IRA!
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