Can Annuities Be Transferred? The Answer May Surprise You

Shawn Plummer

CEO, The Annuity Expert

There’s a lot of confusion about annuities. Many people don’t even know what they are. And even if you do understand them, there are still a lot of questions about how they work. One of the most common questions is whether or not annuities can be transferred. The answer may surprise you! In this guide, we’ll discuss the different ways annuities can be transferred and what to consider before making a transfer.

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Deferred Annuities Can Be Transferred

Annuities can be transferred without paying taxes using the IRS-approved 1035 transfer rule. Annuities in an IRA can be transferred directly to another IRA without any tax consequences.

Annuity Transfer Rule

Immediate Annuities Can Not Be Transferred

Immediate annuities are different from deferred annuities in that they begin paying out income as soon as they are purchased. Because of this, immediate annuities cannot be transferred under the IRS’s rules.

What Is The Annuity Transfer Rule

Annuitized Contracts Can Not Be Transferred

Annuitized contracts are irrevocable payments made by an insurance company to a policyholder for a set period of time. This means that the payments can not be stopped and can not be transferred to another person.

What Are The Annuity Transfer Rules

Next Steps

Regarding annuities, there are a few things to keep in mind. Deferred annuities can be transferred, immediate annuities cannot be transferred, and annuitized contracts cannot be transferred. If you have any questions about what this means or would like a quote, please don’t hesitate to contact us. We’re here to help!

Annuity Transfer Rules

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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