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Level 2
posted Jan 16, 2024 4:17:10 PM

Annuity ownership transfer

If the ownership of a non-qualfied annuity is transferred to the spouse is that a taxable event?  Not divorcing.

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1 Best answer
Level 15
Jan 16, 2024 7:22:34 PM

If a non-qualified annuity is transferred to a spouse, it is not considered a taxable event.  The annuity maintains its tax-deferred status, and the spouse will pay income taxes on the portion of each payment attributed to profits.

 

a gift tax is required if your spouse is not a U.S. citizen and the total gifts you made to your spouse during the year exceed $175,000. 

 

Turbotax does not do gift tax returns. the gift is based on the value of the annuity. 

 

 

 

 

 

2 Replies
Level 15
Jan 16, 2024 7:22:34 PM

If a non-qualified annuity is transferred to a spouse, it is not considered a taxable event.  The annuity maintains its tax-deferred status, and the spouse will pay income taxes on the portion of each payment attributed to profits.

 

a gift tax is required if your spouse is not a U.S. citizen and the total gifts you made to your spouse during the year exceed $175,000. 

 

Turbotax does not do gift tax returns. the gift is based on the value of the annuity. 

 

 

 

 

 

Level 2
Jan 16, 2024 8:28:27 PM

Thank you!  Among sites I visited you are the only one to state this.