excellent. But you still have us confused. This is an US Military pension? When would the payments start?
You have narrowed the choice down to:
1. keep the annuity.
2. move it into an IRA.
Cashing out is for the fool. The taxes reduce the value so low you could never recoup.
We need more information. Is there a beneficiary on the annuity? What happens to the payments when you die?
1. Not military, but a large, well funded private energy firm (nuclear).
2. Payments to start any time at my election. Smallish penalty for starting before 60.
3. Beneficiary if I die is my wife, at a reduced level.