Question

identifying potential disadvantages of annuities
what is a potential disadvantage of investing in an annuity?
tax - deferred growth of investments
limited contribution amounts
high fees and penalties for early withdrawals
immediate tax deduction on contributions

Explanation:

Tax - deferred growth and immediate tax deductions are advantages. Limited contribution amounts are not a common major drawback as compared to high fees and penalties for early withdrawals which can be significant deterrents.

Answer:

high fees and penalties for early withdrawals