GLWB Variable Annuity; What would you recommend? (pay, account, increase)

[leastprime]

Over on a popular forum on Index investing, /personal investing/variable annuity, Person writes something to the affect (words and numbers are coincidental, to avoid TOS issues):

GLWB Variable annuity

[Person has a variable annuity and is considering getting surrendering. he bought it in 2009. Now regrets it. Annuity is now out of the surrender period.

He bought the annuity for 125K. It is in a Roth 401(k) account. It has a death benefit and a guaranteed lifetime withdrawal benefit.

Total premium: 125K
Surrender value : 145K
Surrender charge: 0
Protected withdrawal value: 220K
Guaranteed withdrawal: ~11K/yr (5% of PWV)
Death benefit: 145K

Person, male, 61 years old and will retire in 2-3 years. This annuity makes up a very small portion of his nest egg. Nonetheless, He no longer wants to pay the high fees that drag on the returns and would like to invest the money a little more aggressively. The guaranteed withdrawals are not CPI adjusted and stop when he dies, leaving his wife only the diminished death benefit, if any. He does not think he will need the money any time in the foreseeable future. He's in excellent health.

He announced the following options.
1. Take the 11K annual GW now and roll it into his Roth IRA where he can invest it somewhat more aggressively.

2. Roll the entire 145K surrender value into his Roth IRA where he can invest it somewhat more aggressively.

3. Leave the money in the account and allow the PWV and GW to increase and take the GW later.

He knows now he never should have bought it in the first place but would be interested in any opinions on the best way to proceed. ]

Without going to that other forum, how would you reply?

[rjm1cc]

Since he is unhappy and this is a small part of his assets sell and move on.
I assume he purchased it through work. If they also provide financial consulting to members of the 401k I would run it buy the consultants.

[leastprime]

Doesn't appear to any further replies forthcoming.

I would choose his option #1. Take the distributions and roll it (periodic transfer) into another Roth more to his liking.
Why. Because he has a 11k distribution for life The current annuity (cash value account) will probably be exhausted in 13-15 years and anything after that will be on the company's treasury; this is riskless money to him. This Roth money will tranfer to a new Roth where he can take what ever risk he wants, including leaving it a tax-free gift.