Which statement regarding annuity taxation is NOT true?

The statement regarding gifting an annuity to a spouse includes tax implications that are generally more favorable than those associated with gifting to non-spouses. When an annuity is gifted to a spouse, it typically does not trigger immediate tax consequences because transfers between spouses are usually treated as tax-free events under IRS rules. This is significant because it allows for tax-deferred accumulation of the annuity's value without immediate taxation on either the giver or the recipient upon transfer.

Understanding the tax implications of gifting annuities, especially to spouses versus non-spouses, highlights the nuances in taxation surrounding different kinds of beneficiaries. This knowledge is crucial for financial planning and estate management.