I assume that this is a nonqualified annuity, not an IRA annuity or an annuity in a qualified employer plan. You can only avoid a taxable distribution from a nonqualified annuity if you move the annuity explicitly by what is called a "1035 exchange," essentially a trustee-to-trustee transfer from one annuity to another where no funds are actually being paid to you personally, or if your investment in the contract is greater than the amount distributed and the distribution would be nontaxable even if not deposited into another annuity.
