Probably. Ask the annuity provider. If this is a nonqualified deferred annuity that has a value greater than your investment in the contact and you take a nonperiodic distribution, the gains , which are taxable as ordinary income, come out first before any of your nontaxable investment in the contract comes out. Once the funds are distributed to you, what you do with the money after that has no effect on the taxability of the annuity distribution.