Have 96 year old with an annuity. The annuity company is stating she must make a decision to either surrender the contract or take life time income (annuitization).

She doesn’t want to take a 5yr or so annuitization.

The tax consequence is 45k (176k cv – 131k cost basis)

Question: I don’t think it can be done but just trying.

1. Can we transfer the 45k of tax consequence to another annuity so she won’t be taxed on it yet and then send her the balance of cost basis?

or…

2. it would still be taxable of 45k to her bottom line income no matter how we try?

Thank you
Douglas