Tax ramifications on TSA

The question I have is:

My mother is wanting to give me some money that she has in a Tax Sheltered Annuity (TSA) and the amount is less than $10,000. I know that if I receive it I myself will not have to claim it as a gift because of the amount, but is there a way that she can pull it out of her TSA and not pay taxes on it because she is giving it to me? She is planning on doing it in a year when she turns 59 1/2 to avoid the 10 percent penalty. One option I have is to put some each year into my own IRA, if that is tax deferred also, will the tax benefit carry over?

Thanks for any help.

She will have to pay the tax on distributions she gets from the annuity—giving the money to you does not affect that. You can not affect her tax by putting the money in your own IRA, but if it is a traditional IRA, you can get a deduction for yourself by making the contribution.