ETimbas, you asked:

<< I just found out the other day that my mother has a 10 year annuity through a insurance company. They have been sending her lots of letters lately about reinvesting with them, and not to let anybody talk her out of it. Yeh. I told her that annuities are not a real good investment and she could do better elsewhere. Is it possible to roll it into one of her IRA's or is she going to get taxed on liquidating it no matter what. >>

Unless an annuity is already in one of here IRA's, she can NOT "roll" an annuity into one . . . at least, not without taking takes first and then their would be the annuity contribution limit of the IRA. If she "liquidate" the annuity as a lump sum, then all the gain will be subject to ordinary income tax. If she annuitizes it now (for whatever period she might choose), then part of the installments are taxable (only that part of the installment that is considered principle).

Since an IRA is in your thinking here, and you don't seem to want your mother to pay such taxes jut yet, you might have her consider doing what's called a 1035 exchange into an IRA that DOES have "a real good investment". . . . like some good Variable Annuities. Just be careful what you get your mother into . . . she may not have the risk tolerance that YOU do.