Which action would NOT typically create a taxable event?

The action of rolling the funds of one annuity into another annuity is generally conducted under specific tax-deferred provisions that allow individuals to avoid immediate taxation on the funds being transferred. This process is known as a "1035 exchange," named after the relevant section of the Internal Revenue Code that allows the transfer of funds without triggering a taxable event. By following the regulations stipulated for such exchanges, individuals can maintain their tax-deferred status, allowing for continued growth of their investment without the immediate tax implications that would arise from other transactions.

In contrast, selling stock for a profit directly realizes any capital gains, which are taxable events. Similarly, receiving interest income is typically subject to taxation, as it constitutes ordinary income. Withdrawals from a retirement account often have tax implications as well, particularly if the funds are withdrawn before the account holder reaches the age of retirement, potentially incurring penalties along with taxes owed.