[lefty]

I have been told by my employer that the Annuity is not a "qualified pension plan" as defined by the IRS so I believe my contributions will be tax deductible. My wife has no current retirment plan with her employer so hers should be deductible as well. $4000 +$500 catch-up contribution for each of us since we are both over 50. I checked on the annuity and it is nothing more than a tax deferred account which will grow until I decide to retire at which time I can elect how I want my money. I'm not sure why they call it an annuity which I have always thought to be an insurance instrument that you purchase that ultimately goes to some sort of guaranteed payment over a particular period of time. According to Fidelity this after tax money just stays in the account until I decide to take it out via lump sum, equal payments, etc. No withdraw requirements until I am (if I remember right) 85 and an IRS penalty if I withdraw before age 59. Seems to me that maxing out the traditional IRA contributions would be first priority with additional cash going in to the annuity a distant second.