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Another question to ask; Until she leaves the company, what is it invested in?

When she leaves the company I would be very surprised if she couldn't roll it out to and IRA as a lump sum. Ask on this.

Several of the other posts mentioned that if she rolls it out to an IRA then she could just buy an annuity within an IRA. Usually(but not always) an annuity within an IRA is a bad choice because one of the appeals of an annuity is its tax advantages, but within an IRA those tax advantages don't matter.

Either way you should also research the costs/ commissions/ overhead/ and restrictions of any annuity that you are looking at. Many if not most annuities are a rip-off because of their costs and performance.

Usually the employer would buy the annuity from a third party but it is possible that the third party could end of being a subsidiary of the bank. Hopefully the bank would use their clout to get a good deal on the annuity but don't count on it. The quality of the company that provides the annuity is what you want to check on because if they go belly up it will be a mess. If it is a small company there is a good chance that they will be bought by another company any

In addition while interest rates are low the annuities will have a relatively low payout that you will be locking yourself into for the rest of your life. Just as now probably isn't a real good time to buy 30 bonds, it isn't an ideal time to buy an annunity.

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