For many, transferring funds from one investment to another is necessary at times and the option to be able to do this gives a sense of security. The 1035 Exchange is a provision in the tax code that enables policyholders to transfer funds from policies like Life Insurance or Annuities without recognizing income taxes from gains inherent in a policy.
It is important to note that while you may not be subjected to income taxes on the exchange, there may be penalties and/or surrender charges imposed by the original insurance or annuity company.
Advisors Insurance Brokers (AIB) is happy to answer your questions on 1035 Exchanges and qualification. Get the process started by contacting us today.