You’re in luck. It just so happens that the tax law was changed to permit “partial annuitization” of deferred annuities, starting last year. This means you can designate part of the annuity for immediate payouts, while retaining tax deferral for the balance of the annuity. If you want to move the deferred annuity to another insurance company, you can do so tax free via a “1035 exchange.” Contact the new insurance company to get the paperwork you need for the transfer. Be sure to follow all of the transfer rules so you won’t be taxed now.