So here is my question. As the owner of an annuity that is my daughters money, when I take money out for her I do the 1096/1099 forms. This transfers it all to her and not to me. However when she gets the 1099R form from me does she incur penalties when she reports it? She would be penalized if this was in her social and the payout came direct to her from the annuity company. I never considered this before....the difference is between 20% and 30% if she's penalized.
