Can I Move My Annuity to Another Company?

Can you move your annuity from one company to another?

Yes.

In many cases, you can.

And if structured correctly, it can be a non-taxable event.

But that does not mean you should automatically do it.

That’s the part people miss.

Key Takeaways

• Some annuities can be moved to another company
• Transfers can be non-taxable when done correctly
• 1035 exchanges apply to non-IRA annuity transfers
• IRA and Roth IRA annuities can transfer to matching IRA or Roth IRA structures
• Annuitized income products generally cannot be transferred
• Moving an annuity must improve your contractual position

Some Annuities Can Be Moved

Deferred annuities can often be moved from one company to another.

That includes:

• Multi-Year Guarantee Annuities
• Fixed Index Annuities
• Variable Annuities
• RILAs

Those are deferred annuity structures.

They can potentially transfer.

Some Annuities Cannot Be Moved

Annuitized products usually cannot be transferred.

That includes:

• Single Premium Immediate Annuities
• Deferred Income Annuities
• Qualified Longevity Annuity Contracts

Once those products are turned into income, the faucet is on.

There is no liquidity.

There is no transfer option.

How 1035 Exchanges Work

For non-IRA money, moving from one annuity to another is usually done through a 1035 exchange.

That means money moves from one annuity company to another without triggering current taxes.

It is a non-taxable transfer when done properly.

IRA and Roth IRA Transfers

If the annuity is inside a traditional IRA, it can transfer from IRA to IRA.

If the annuity is inside a Roth IRA, it can transfer from Roth IRA to Roth IRA.

Those can also be non-taxable events when structured correctly.

The account type has to match.

Just Because You Can Does Not Mean You Should

This is the most important part.

Moving an annuity has to be in your contractual best interest.

Not hypothetical.

Not theoretical.

Not because of a bonus.

Not because an agent wants another commission.

The receiving company has to see that the transfer improves your position contractually.

Beware of Churning and Twisting

Moving someone from one annuity to another just to generate a new commission is called churning or twisting.

That is illegal.

And it happens.

A lot.

Especially in the Indexed Annuity world.

If someone is pushing you to transfer because of an upfront bonus, be careful.

That usually does not make up for surrender charges.

When Moving an Annuity May Make Sense

There are situations where a transfer can make sense.

For example:

• moving from a high-fee Variable Annuity to a no-fee MYGA
• moving from an old annuity into a stronger contractual guarantee
• moving from a cash value life insurance policy into an annuity using a 1035 exchange
• moving from a MYGA into an Immediate Annuity for lifetime income

But it has to be proven with side-by-side numbers.

Cost Basis Transfers Too

When you transfer an annuity correctly, your cost basis transfers with it.

That matters for taxation.

You are not wiping the slate clean.

You are moving the existing tax structure into the new contract.

Ask to See the Comparison

If an agent recommends a transfer, ask to see the side-by-side comparison.

Where are you now?

Where are you going?

What contractual improvement are you actually getting?

If they cannot show that clearly, stop.

Where to Review Transfer Options

If you want to see whether moving your current annuity makes contractual sense, you can compare options using our annuity calculators here: https://www.stantheannuityman.com/ annuity-calculator/

The Bottom Line

Yes, you can move some annuities to another company.

And yes, it can be done as a non-taxable event.

But the bigger question is:

Should you move it?

Only if the new contract clearly improves your situation.

Not because of a bonus.

Not because of a sales pitch.

Because the contractual numbers are better.