If the annuity is a non-qualified annuity (an annuity that’s not held inside an IRA or company retirement plan), it cannot be rolled over to an IRA. However, if the annuity is a qualified annuity (such as an IRA annuity), then it can be rolled over or transferred into an IRA. The tax rules in effect at that time would have to be complied with.
however, sooner or later someone is going to have to pay income taxes on the annuity or IRA because there is no step-up in basis. The term income in respect of a descendant is what applies to this asset.
