This is not tax advice for anyone’s situation so consult your tax adviser first…

The 3% varies based on what interest rates are currently…Obviously, if you have other debt higher than 3%, you might want to consider it, but you can’t deduct underpayment penalties like student loans or mortgage debt or business debt…A business might just get other loans and just deduct it against income which maybe better to overall minimize taxes.

I’m not sure if taking the annuity is better. Remember that after 20 years, that 104k is no where near what it is today. You also have to look at how much income a lump sum can generate vs. an annuity of 100k per year vs. taking say 1.2 mil after taxes.

It’s probably overall the same, but with the cost of money and inflation and lack of control, I think people who can manage their finances are probably better off taking the lump sum.