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"that the annuity is inside an IRA. She can rollover the IRA to another provider tax-free, but if she takes any money out, she'll be subject to the income tax you mentioned, and a 10% excise tax as well. "

Good point. That had escaped me. She can still diversify by transferring a part of money to another trustee, that is to open another IRA.

Grumble, IRA is a lousy place for an annuity.....!!!!

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