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Greetings, KaoKoKung, and welcome. You asked:

<<OK, Pixy,
I get it. But, I already have an Annuity. What do I do now? I already found out about the non-liquidity part when I tried to close it earlier this year. Is there
anyway to get around the big tax bite? I am 66, still
working. >>

The horse is already out of the barn, and there is no way to avoid income taxes on earnings within that annuity. Someone at some point will have to pay them, just as all tax deferred money is taxed at some date in the future. Your task now would be to see how investing any money you net after taxes and surrender/redemption fees would compare to the future after-tax growth you might gain in the annuity. Only you can do that analysis.

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