We have a potential client that took money out of an annuity in 2016 and has realized she doesn’t need the money. We’re curious if it’s possible to put the money back into the annuity or another annuity to avoid the taxes.

Here are the details:

She had a $100,000 non-qualified annuity that was out of surrender. Upon taking the $100,000 out for a downpayment for a home, she deposited it into an account. The home purchase then fell through. Of the roughly $100,000, about $40,000 is a gain that will be taxed. She removed the funds in October 2016.

I know with qualified funds, they can get it back in within 60 days, but I’m uncertain if there are any tx rules regarding non-qualified withdrawals going back into an annuity.

Any help would be appreciated.

Andrew