The 2024 Form 1099-R indicates an ordinary distribution from the nonqualified annuity, not a section 1035 exchange, so the amount shown in box 2a of the Form 1099-R is the amount that is taxable that adds to your AGI on your 2024 tax return. According to the annuity provider, you simply cashed out (surrendered) the annuity. In this case box 2a is blank, so if box 2b Taxable amount not determined is not marked, it means that box 2a should have a zero in box 2a and should not be blank. (Many payers mistakenly believe that a blank box 2a is the same as having a zero in box 2a.) If box 2b Taxable amount not determined is marked, you'll need to determine your investment in the contract and subtract that from the amount in box 1 to determine the taxable amount.
The purchase of the new annuity is an entirely independent transaction (other than the fact that you made the purchase using the cash received from surrendering the original annuity).
1411 of the section of the tax code that imposes Net Investment Tax on the taxable amount of an investment.
