Moving an Annuity Into a Gold IRA
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Short on time? The essentials
- Only a qualified annuity, which is one held inside a 403(b) tax-sheltered annuity, a 401(k) or 401(a) plan annuity option, or an IRA annuity contract, is eligible to be rolled into a self-directed gold IRA. A non-qualified deferred annuity is not.
- Under IRS Publication 575 and IRC Section 402(c), an eligible rollover distribution moved directly from the qualified annuity to the receiving custodian is not taxable. Distribution code G on Form 1099-R records the direct rollover.
- A payment made to you instead triggers mandatory 20 percent federal income tax withholding under IRC Section 3405. You then have 60 days to redeposit the full pre-withholding amount into the new IRA or the missing slice is taxed as a distribution.
- Contract surrender charges are set by the insurance company that issued the annuity, not by the IRS. They usually run on a declining schedule of 5, 6, 7, 8, or 10 years, and a market value adjustment on a fixed annuity can add or subtract more.
- An immediate annuity or an annuitized deferred contract cannot be rolled because the payments are treated as substantially equal periodic payments over your life expectancy under IRS rules.
- A non-qualified annuity can only be exchanged for another annuity tax-free under IRC Section 1035. It cannot be exchanged into an IRA. A full surrender pays ordinary income on the gain plus a 10 percent federal early-withdrawal penalty on the gain if you are under age 59 and a half.
- Inside the gold IRA, cash buys IRS-approved metal at 99.5 percent gold, 99.9 percent silver, and 99.95 percent platinum and palladium. The American Gold Eagle is IRA-eligible by statute at 91.67 percent purity.
- Texas has no state personal income tax on any IRA distribution. The state-run Texas Bullion Depository in Leander is an in-state IRA storage option through Lone Star Tangible Assets.
On this page
- The main annuity types and which one you own
- Which annuities can move into a gold IRA
- The qualified-annuity-to-gold-IRA rollover in eight steps
- Direct vs indirect: the 20 percent withholding chart
- Surrender charges, MVA, and bonus recapture
- Non-qualified annuities and the IRC Section 1035 exchange
- Immediate and annuitized contracts: why the payments cannot roll
- What gold the IRA can hold
- What Texas changes
- The fee stack you will see
- Check whether your annuity is eligible to roll
- Worked example: a Houston retiree rolls a 200,000 dollar 403(b) TSA
- When moving an annuity to a gold IRA is a bad idea
- Annuity to gold IRA FAQ
The main annuity types and which one you own
The word annuity covers several very different contracts. Which one you hold decides whether a gold IRA rollover is even possible, so start here.
The first split is tax status. A qualified annuity lives inside a tax-advantaged retirement plan or IRA. Contributions were pre-tax, growth is tax-deferred, and the whole balance is taxable at distribution. A non-qualified annuity was bought with after-tax dollars outside any retirement plan. Only the gain is taxable when it comes out.
The second split is payout phase. A deferred annuity is still accumulating. It has a cash surrender value you can pull. An immediate annuity, or a deferred contract that has been annuitized, is paying out a stream of periodic payments over your life or a fixed term.
| Type | Tax status | Where it lives |
|---|---|---|
| 403(b) tax-sheltered annuity (TSA) | Qualified | Inside a 403(b) plan sponsored by a public school, university, hospital, or non-profit employer |
| 401(k) or 401(a) annuity option | Qualified | Inside an employer-sponsored 401(k) or 401(a) plan as one of the investment choices |
| IRA annuity contract | Qualified | The annuity is itself the IRA; the insurance company is the IRA custodian |
| Deferred non-qualified annuity | Non-qualified | Owned personally, bought with after-tax dollars; not inside any retirement plan |
| Immediate annuity (SPIA) | Usually non-qualified; can be qualified if bought inside a plan | Paying out substantially equal periodic payments starting within a year of purchase |
| Qualified longevity annuity contract (QLAC) | Qualified | Inside an IRA or plan; designed to defer income to as late as age 85 |
Sourced from IRS Publication 575, IRS Publication 590-A, and IRC Sections 72, 403(b), and 401. Verify your contract type on the declaration page and Form 1099-R reporting. Checked June 2026.
The label the insurance company prints on the contract matters less than the tax bucket. Two ways to confirm which bucket you are in. Check the tax reporting: a qualified annuity generates Form 1099-R with the distribution code for retirement plans. A non-qualified annuity generates Form 1099-R with distribution code D or code 7 depending on age and status. Or ask the annuity company in writing whether the contract is qualified or non-qualified.
Which annuities can move into a gold IRA
The rollover rules narrow the field. IRS Publication 575 and IRC Section 402(c) define an eligible rollover distribution as a distribution of all or part of an employee's balance in a qualified retirement plan, with a fixed exception list. Only a distribution that fits inside that definition can be moved into a gold IRA.
A qualified annuity balance is inside a qualified plan or an IRA. Surrendering the contract or requesting a distribution creates a distribution the same way any other plan balance would. If the payment is not on the exception list, it is eligible to be rolled directly to a self-directed IRA that holds bullion.
The exception list is short and inflexible. A required minimum distribution is not eligible for rollover. A series of substantially equal periodic payments made over your life expectancy, the joint life expectancy of you and a beneficiary, or a period of 10 or more years is not eligible. A hardship distribution is not eligible. Corrective distributions of excess contributions are not eligible.
Everything else on a qualified annuity generally is eligible. A cash surrender of the entire balance qualifies. A partial surrender the plan permits qualifies. A plan termination distribution that includes the annuity qualifies. A trustee-to-trustee transfer of an IRA annuity into a self-directed IRA qualifies. Standard federal rollover rules apply.
A non-qualified annuity is a different world. It is not held inside a retirement plan, so its cash value is not an eligible rollover distribution and cannot be moved into an IRA. The only tax-free move it can make is a 1035 exchange to another annuity. The non-qualified section below covers the workaround for readers who want to reach a gold IRA from that starting point.
The qualified-annuity-to-gold-IRA rollover in eight steps
The mechanical sequence is consistent whether the annuity sits inside a 403(b), a 401(k), or an IRA. The order of operations does not change with the funding source, only the paperwork that opens the process.
- Confirm the contract is qualified and the balance is an eligible rollover distribution. Ask the annuity company or plan administrator in writing whether the payment qualifies. Required minimum distributions, substantially equal payments over your life expectancy, hardship distributions, and payments from an already-annuitized contract do not qualify.
- Pull the current surrender-charge schedule from the annuity contract. The schedule and any market value adjustment sit in the contract itself, not on the plan record. This tells you the real dollar amount that will hit the receiving IRA, not the account statement balance.
- Open a self-directed IRA. A precious-metals IRA needs a qualified non-bank trustee or self-directed IRA custodian. Equity Trust Company, STRATA Trust, and GoldStar Trust are commonly used for Texas accounts.
- Pick a gold IRA dealer. The dealer sources the metal and coordinates with the custodian. Verify the dealer works with your chosen custodian and quotes tight spreads on common bullion before signing paperwork.
- Elect the direct rollover on the plan's distribution form or the trustee-to-trustee transfer form on an IRA annuity. On the election, list the receiving custodian by name, "for the benefit of" your new IRA account number. The check or wire is made payable to the custodian, not to you.
- Place the metal order. Once the cash arrives in the new IRA, instruct the custodian to pay the dealer for IRS-approved bullion or coins meeting IRC Section 408(m)(3) fineness rules. The dealer ships the metal directly to an IRS-approved depository.
- Confirm the depository entry. The depository issues a receipt to the custodian. Your IRA statement shows the inventory line. Storage can be segregated or commingled depending on the agreement.
- File the right forms next April. The annuity company issues Form 1099-R with distribution code G for a direct rollover, or a trustee-to-trustee transfer generates no 1099-R at all. The receiving custodian issues Form 5498. Report the gross amount on Form 1040 line 4a or 5a with a taxable amount of zero on the taxable line.
Direct vs indirect: the 20 percent withholding chart
IRS Publication 575 recognizes two ways to move a qualified annuity balance into a gold IRA. The label is paperwork. The dollar consequence on a large annuity surrender is significant.
A direct rollover sends the surrender proceeds from the annuity company straight to the receiving IRA custodian. The check or wire is made payable to the custodian, not to you. No federal withholding applies. No 60-day clock runs. This is the default recommendation for almost every qualified-annuity move.
A payment made to the annuitant instead triggers IRC Section 3405. The annuity company must withhold 20 percent for federal income tax before releasing the check. The annuitant then has 60 days to redeposit the full pre-withholding amount into the new IRA. The missing 20 percent has to come from personal savings during that window.
The 20 percent withholding is later credited against the federal tax bill at filing. If the annuitant redeposited the full pre-withholding amount on time, the credit returns as part of the refund. If only the 80 percent that arrived is redeposited, the missing 20 percent is treated as a taxable distribution. A 10 percent federal early-withdrawal penalty stacks on top for annuitants under 59 and a half unless an exception fits.
The 60-day window has waiver relief in narrow cases. IRS Publication 575 references Revenue Procedure 2016-47 and later guidance that allows a self-certification waiver in specific hardship situations, such as a plan administrator error or a serious illness. Do not plan on that safety net; it is discretionary.
A trustee-to-trustee transfer between an IRA annuity and a receiving self-directed IRA is not a rollover at all under IRS rules. It generates no Form 1099-R, no 60-day clock, and no withholding. That is the cleanest paper trail available on an annuity move.
Surrender charges, MVA, and bonus recapture
The IRS does not charge a surrender fee on the annuity itself. The insurance company does. These contract-level costs are the single biggest variable between the account balance you see on the statement and the cash that lands in the gold IRA.
A surrender charge is a percentage of the withdrawal that the insurer keeps if you cash out before the schedule runs. The schedule is set at contract purchase and usually declines over 5, 6, 7, 8, or 10 years. A 7-year contract might charge 7 percent in year 1, 6 percent in year 2, and so on down to zero at year 8. Read the schedule in the contract, not the marketing brochure.
A market value adjustment (MVA) applies on many multi-year guarantee annuities and some fixed indexed annuities. It compares the guaranteed rate on your contract to current market rates. If rates have risen since you bought the contract, the MVA subtracts from your surrender value. If rates have fallen, it can add to it. The MVA can move the final wire amount by several percentage points either direction.
A bonus annuity paid a premium bonus at deposit. If you surrender inside a defined recapture window, usually the same length as the surrender-charge schedule, the insurer claws back some or all of the bonus. Read the bonus recapture terms alongside the surrender schedule; they are usually stacked, not exclusive.
A free withdrawal amount, usually 10 percent of the contract value per year, escapes the surrender charge entirely. On a partial rollover strategy, taking only the free-withdrawal slice each year can move an annuity to a gold IRA in stages without triggering the surrender penalty. This requires a partial-rollover election the plan or contract has to allow.
| Layer | Who charges it | Typical range |
|---|---|---|
| Surrender charge | Insurance company that issued the annuity | 0 to 10 percent, declining over the surrender period; zero after the schedule ends |
| Market value adjustment (MVA) | Insurance company on multi-year guarantee and some indexed annuities | Can add or subtract several percent depending on the direction of interest rates since purchase |
| Bonus recapture | Insurance company on bonus annuities | All or part of the up-front bonus if surrendered inside the recapture window |
| Mandatory federal withholding on payment to you | Insurance company under IRC Section 3405 | 20 percent of the eligible rollover distribution if the payment goes to you instead of the receiving custodian |
| New gold IRA custodian setup and annual fee | Self-directed IRA custodian | Flat setup fee at account open; flat or tiered annual fee thereafter |
| Depository storage and insurance | IRS-approved depository (Delaware Depository, Brinks Global Services, IDS, Texas Bullion Depository) | Flat annual fee, sometimes scaled by metal value |
| Dealer markup on metal | Precious-metals dealer | Tight on common bullion; wide on premium or proof coins marketed as exclusive |
Sourced from IRC Section 3405, IRS Publication 575, and public fee schedules at Equity Trust, STRATA Trust, GoldStar Trust, Delaware Depository, Brinks Global Services, and the Texas Bullion Depository. Confirm current terms with each provider before signing. Checked June 2026.
Non-qualified annuities and the IRC Section 1035 exchange
A non-qualified annuity was bought with after-tax money. It is not inside a retirement plan and its cash value is not an eligible rollover distribution. There is no direct path from a non-qualified annuity into an IRA of any kind.
The one tax-free move a non-qualified annuity can make is an IRC Section 1035 exchange. Under IRC Section 1035, one non-qualified annuity contract can be exchanged for another non-qualified annuity contract with no tax at the moment of the exchange. The cost basis carries over to the new contract. A 1035 exchange from an annuity to an IRA is not permitted; 1035 covers annuity-to-annuity, annuity-to-life-insurance-to-annuity, and a few other pairings the statute lists, not annuity-to-IRA.
The only way a non-qualified annuity ends up funding a gold IRA is through a full surrender and a separate contribution. The steps are painful and rarely worth it for large balances.
- Full surrender. The insurer pays the cash surrender value. The gain portion, which is contract value minus cost basis, is taxable ordinary income in the year of surrender. IRC Section 72(q) adds a 10 percent federal early-withdrawal penalty on the taxable gain if you are under age 59 and a half, with a short exception list.
- Pay the tax and any penalty at filing. The insurer issues Form 1099-R with a distribution code identifying the non-qualified annuity payout. The gain is reported as ordinary income on Form 1040.
- Contribute after-tax cash to a traditional or Roth IRA. Regular IRA contribution limits apply. For 2026 the limit is 7,500 dollars, with a 1,100 dollar catch-up for age 50 and above. A large non-qualified annuity balance will fund many years of contributions, not a single-year move.
- Once inside the IRA, direct the custodian to buy IRS-approved bullion. The same fineness rules apply as any other gold IRA.
The tax hit on step 1 makes this a poor fit for most non-qualified annuity holders. A cleaner path for readers who want precious metals exposure from a non-qualified annuity is often to leave the annuity alone, buy physical bullion with new savings, and hold that bullion outside a retirement account. Consult a CPA before making the call.
Immediate and annuitized contracts: why the payments cannot roll
An immediate annuity, called a SPIA when funded with a single premium, starts paying a stream of periodic payments within a year of purchase. A deferred annuity that has been annuitized is doing the same thing later in life. Both are in payout phase.
IRS Publication 575 lists distributions that are not eligible rollover distributions. One item on the list is a series of substantially equal periodic payments. The measuring period can be the annuitant's life expectancy, the joint life expectancy with a beneficiary, or a specified period of 10 or more years. That describes every annuitized payment stream by design.
The consequence is direct. Each payment the immediate annuity or annuitized contract sends you cannot be rolled into a gold IRA. The payment is taxable at ordinary rates in the year received, and it stays outside any IRA wrapper.
Two narrow exceptions surface in the annuity context. A qualified longevity annuity contract inside an IRA has separate rules and a defined maximum. A commercial annuity used inside a substantially equal periodic payment plan can be exchanged for another commercial annuity that continues the plan. IRC Section 72(t) governs the exchange. This is still an annuity-to-annuity move, not a move into an IRA.
Practical implication. If your objective is to hold physical gold inside a retirement account and your annuity is already annuitized, the annuity payments themselves are stuck. Any gold IRA has to be funded from a different source: a separate IRA, a 401(k) rollover, a pension lump sum, or new annual contributions.
What gold the IRA can hold
IRC Section 408(m) generally bans collectibles inside an IRA. It then carves out an exception for bullion and certain coins meeting a fineness threshold. The gold floor is 99.5 percent purity. Silver is 99.9 percent. Platinum and palladium are 99.95 percent.
Two coins are named statutory exceptions inside the rule. The American Gold Eagle is IRA-eligible at 91.67 percent (22-karat). The American Silver Eagle is IRA-eligible at 99.9 percent. Proof Eagles qualify when held in original mint packaging with the certificate.
Bars must come from a refiner or assayer approved by NYMEX, COMEX, LBMA, or produced by a national government mint. Common eligible names include PAMP Suisse, Credit Suisse, Valcambi, the Royal Canadian Mint, and the Perth Mint.
Common eligible coins include the American Gold Eagle (statutory), American Gold Buffalo at 99.99 percent, Canadian Gold Maple Leaf at 99.99 percent, Austrian Gold Philharmonic at 99.99 percent, and Australian Kangaroo at 99.99 percent. The South African Krugerrand sits at 91.67 percent gold with no statutory exception; it is not IRA-eligible.
What Texas changes
Federal IRA rules apply identically in every state. What Texas changes is the wrapper around them.
Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. Any taxable IRA distribution, including a botched indirect rollover on the annuity surrender, a future required minimum distribution, or the non-qualified annuity gain in the workaround above, is taxed at the federal level only. A Texas resident does not pay a state layer on top.
For storage, Texas offers a unique in-state option. The Texas Bullion Depository is an agency of the State of Texas, authorized by HB 483 signed by Governor Greg Abbott on June 12, 2015. It has operated since 2017 on a roughly 10-acre, purpose-built campus in Leander, Texas, with Lone Star Tangible Assets (LSTA) as the contractor.
The depository accepts gold, silver, platinum, palladium, and rhodium. IRA storage is supported through LSTA. Coordination with self-directed IRA custodians such as Equity Trust Company is set up on a case-by-case basis, and current pricing and account-opening flow are negotiated with the dealer and custodian. Confirm the current IRA-storage process directly with the dealer and custodian. Source: texasbulliondepository.gov IRA storage page, checked June 2026.
The practical takeaway for a Texas annuity owner. The federal mechanics do not change. The state tax line is zero. The metal can be held inside the state at a state-overseen depository instead of in Wilmington or Salt Lake City. None of that changes whether the underlying rollover decision is right for the individual annuitant.
The fee stack you will see
An annuity charges its costs invisibly. Mortality and expense, administrative, rider, and subaccount fees are subtracted from the contract value before it prints on the statement. A gold IRA carries its own fee stack, with several stacked line items the annuitant pays directly.
| Fee | What it pays for | How it is usually charged |
|---|---|---|
| Contract surrender charge | Insurer's cost recovery for early cash-out | Percentage on a declining schedule; zero once the schedule ends |
| Market value adjustment | Rate-differential settlement on multi-year guarantee contracts | Add or subtract on the surrender value based on current rates versus contract rate |
| Bonus recapture | Return of the up-front premium bonus on a bonus annuity | Percentage of the bonus if surrendered inside the recapture window |
| New custodian setup | Opening the self-directed IRA account | One-time at account open |
| Annual custodian fee | Recordkeeping, tax reporting (Form 5498), statements | Flat annual fee or tiered by account size |
| Annual storage fee | Depository vault, insurance, audits | Flat annual fee, sometimes scaled by metal value |
| Dealer markup on metal | Spread between spot price and the price you pay | Embedded in the metal price; rarely itemized |
| Wire and shipping | Funding wire, dealer-to-depository shipping | Per-event flat fee |
| Buyback spread | Difference between dealer bid and current spot | Only when you sell back to the dealer |
Sourced from IRC Section 3405, IRS Publication 575, public fee schedules at Equity Trust, STRATA Trust, and GoldStar Trust, and depository schedules at Delaware Depository, Brinks Global Services, IDS, and the Texas Bullion Depository. Confirm current pricing with each provider before signing. Checked June 2026.
The dealer markup is the line item with the widest range. Common bullion coins and bars carry tight spreads. Premium or proof coins marketed as exclusive or limited carry markups that can be several times higher. A clean annuity rollover is undone quickly if the metal is bought at a 25 percent or 35 percent markup over spot.
Check whether your annuity is eligible to roll
Before calling a provider, confirm the annuity surrender or transfer is actually eligible to roll under IRS rules. The screening tool below walks through the eligibility questions and timing rules. It is a triage step, not legal or tax advice.
Can you roll your account into a gold IRA? Eligibility checker
Most retirement money can move into a gold IRA once it is an eligible rollover distribution. Pick your account and situation for a general answer. Always confirm the specifics with your plan administrator or custodian.
General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% withholding.
Picking a company that explains every fee up front is the first step. Get the free gold IRA company checklist.
Worked example: a Houston retiree rolls a 200,000 dollar 403(b) TSA
Your next step
If an annuity-to-gold-IRA move looks like the right fit, the highest-leverage action is to vet the receiving provider before signing any surrender or rollover election. Augusta Precious Metals is our primary affiliate partner and publishes a free gold IRA company checklist built for that vetting step.
Get the Augusta Precious Metals gold IRA company checklistSponsored link. Use it to evaluate any provider you call, including Augusta itself. Past performance is not a guarantee of future results.When moving an annuity to a gold IRA is a bad idea
A gold IRA is not the right move for every annuity owner. The patterns where it backfires are repeatable. We list them here, with no CTA attached.
Your annuity is non-qualified and the gain is large. A full surrender pays ordinary income on the gain plus the 10 percent penalty under IRC Section 72(q) if you are under age 59 and a half. On a 200,000 dollar contract with 120,000 dollars of gain, that is a very expensive first step.
You are still inside the surrender-charge window and the schedule bites hard. A 7 percent surrender charge on a 250,000 dollar contract removes 17,500 dollars from the balance before the wire even leaves. Waiting for the schedule to run out often beats moving early.
Your contract has a bonus you would forfeit. Bonus recapture rules can claw back the entire up-front bonus if you surrender inside the recapture window, on top of the standard surrender charge.
The annuity has been annuitized. Substantially equal periodic payments over your life expectancy are not eligible rollover distributions. The payments themselves cannot fund a gold IRA.
You rely on an income rider or living benefit. Guaranteed minimum income benefit, guaranteed lifetime withdrawal benefit, and similar riders are lost at surrender. If the rider value is above the account value, the surrender proceeds understate what you are giving up.
Your balance is small. A 15,000 dollar IRA carrying a 200 dollar annual custodian fee and a 150 dollar storage fee is paying more than 2 percent per year on flat operating costs alone, before any dealer markup. Small balances rarely justify a self-directed structure.
You need the money inside 5 years. Physical metal inside an IRA is liquid in principle and slow in practice. Buyback spreads and depository release timing add friction on any short-horizon draw.
The dealer is pushing premium or proof coins. Wide markups on graded coins are the most common way a gold IRA goes wrong. Stay with common bullion coins and bars.
You want the metal at home. An IRA cannot hold metal at your house. The 2021 Tax Court ruling in McNulty v. Commissioner confirmed that home storage triggers a full distribution.
Annuity to gold IRA FAQ
Can any annuity be rolled into a gold IRA?
No. Only a qualified annuity, held inside a 403(b), a 401(k) or 401(a), or an IRA, can be moved into a self-directed gold IRA. A non-qualified annuity bought with after-tax dollars outside a retirement plan is not eligible for rollover. An annuitized contract sending substantially equal periodic payments cannot roll those payments either.
Is a qualified annuity rollover to a gold IRA taxable?
A direct rollover or trustee-to-trustee transfer is not taxable. The annuity company wires the surrender proceeds to the receiving custodian. Form 1099-R is issued with distribution code G. A trustee-to-trustee transfer generates no 1099-R at all. You report the gross amount on Form 1040 line 4a or 5a with zero on the taxable line.
A payment made to you instead triggers 20 percent federal withholding under IRC 3405. Rolling pre-tax annuity dollars into a Roth IRA is a Roth conversion, taxable in the year of the move.
Can I do a 1035 exchange from an annuity into a gold IRA?
No. IRC Section 1035 permits tax-free exchanges between annuity contracts, between life insurance contracts, and between qualifying combinations of the two. The statute does not include an IRA on either side of the exchange. A qualified annuity moves to a gold IRA through a rollover or trustee-to-trustee transfer, not through a 1035 exchange.
What is the surrender charge on my annuity?
The surrender charge is a percentage the insurance company keeps if you cash out during a defined period after purchase. The schedule sits in your contract. It typically starts at 5 to 10 percent in year 1 and declines to zero after 5 to 10 years. A market value adjustment on a fixed multi-year guarantee annuity or fixed indexed annuity can add or subtract more. Read the contract before requesting a surrender.
Does Texas tax an annuity surrender or IRA rollover?
No. Texas has no state personal income tax under Article 8, Section 24 of the Texas Constitution. A botched indirect rollover that becomes a taxable distribution is taxed by the IRS only. The 10 percent federal early-withdrawal penalty still applies on the taxable portion if you are under age 59 and a half and no exception fits.
Can I move only part of my annuity to a gold IRA?
Sometimes. Many annuity contracts allow a free withdrawal of 10 percent of contract value per year without a surrender charge. That slice can be rolled into a gold IRA as a partial direct rollover if the annuity is qualified. On a non-qualified annuity, the free-withdrawal slice cannot fund an IRA; only regular annual contributions to the new IRA can. Confirm partial-rollover eligibility with the annuity company in writing.
What happens to my income rider if I surrender the annuity?
The rider is lost at surrender. Guaranteed minimum income benefit, guaranteed lifetime withdrawal benefit, and similar living-benefit riders exist inside the annuity contract and do not travel with the money. If the rider value is above the account value, the surrender proceeds understate what you are giving up. Model both paths with a CPA and a fiduciary advisor before signing the surrender.
What forms do I get after an annuity direct rollover?
The annuity company issues Form 1099-R with distribution code G for a direct rollover of a qualified annuity. A trustee-to-trustee transfer between an IRA annuity and a receiving self-directed IRA generates no 1099-R at all. The receiving custodian issues Form 5498 reporting the rollover contribution. Report the gross amount on Form 1040 line 4a or 5a with a taxable amount of zero on the taxable line.
Sources
- Internal Revenue Service. Publication 575: Pension and Annuity Income. irs.gov/publications/p575. Checked June 2026.
- Internal Revenue Service. Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs). irs.gov/publications/p590a. Checked June 2026.
- Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b. Checked June 2026.
- Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions. irs.gov/retirement-plans. Checked June 2026.
- Internal Revenue Service. Topic No. 413, Rollovers from Retirement Plans. irs.gov/taxtopics/tc413. Checked June 2026.
- Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions from Retirement Plans. irs.gov/taxtopics/tc558. Checked June 2026.
- Internal Revenue Code Section 402(c). Rollovers from qualified plans. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 403(b). Tax-sheltered annuities for public school and non-profit employees. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 3405. Special rules for pensions, annuities, and certain other deferred income. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 408(m). Collectibles rule and bullion exception. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 1035. Tax-free exchanges of insurance and annuity contracts. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 72(q). Additional 10 percent tax on early distributions from non-qualified annuities. uscode.house.gov. Checked June 2026.
- Internal Revenue Code Section 72(t). Additional 10 percent tax on early distributions from qualified plans and IRAs. uscode.house.gov. Checked June 2026.
- United States Tax Court. McNulty v. Commissioner, 157 T.C. No. 10 (November 18, 2021). Home-storage IRA confirmed as a full distribution.
- United States Securities and Exchange Commission. Investor Bulletin: Variable Annuities. sec.gov/investor/pubs/varannty.htm. Checked June 2026.
- Financial Industry Regulatory Authority. Annuities. finra.org/investors/investing/investment-products/annuities. Checked June 2026.
- Texas Bullion Depository. IRA Storage Services. texasbulliondepository.gov. Checked June 2026.
- Office of the Texas Comptroller of Public Accounts. Texas Bullion Depository overview. comptroller.texas.gov. Checked June 2026.
- Texas Constitution, Article 8, Section 24. Prohibition on a state personal income tax. statutes.capitol.texas.gov. Checked June 2026.