1035 Exchange For Annuity Holders

If you have invested in an annuity and do not know what a 1035 exchange is then it is time you learned. Simply put, a 1035 exchange is in reference to a section of tax code that allows you, the annuity holder to exchange your current annuity for another without triggering any tax liabilities. Compare rates on a 1035 exchange using our online quote service located here.

Why would you want to do this? Well, upgrading to a more favorable annuity is the main reason. Under IRC Section 1035, if you meet the correct guidelines then you can exchange annuities without being taxed.

Here are a few reasons you might want to exchange annuities:

• Higher interest rates
• A change in your financial strategy
• To receive better benefits or features

You should talk with your life insurance agent that guided you in purchasing your annuity in the first place to see if there are any penalties or surrender fees that you will incur by exchanging annuities. You might want to compare any of these fees with all of the financial benefits you will gain from the 1035 exchange to see if it is worth it in the long run.

“Is a 1035 Exchange Right For Me?”

It is not uncommon for an annuity holder to want to improve their investment over the course of its life. However, all the fees and taxes associated with making substantial changes to your annuity can be discouraging. But if you know about the 1035 exchange then you know that not having to worry about tax liabilities is a big push toward exchanging your annuity for a more promising one. Talk to an expert today about the 1035 exchange and whether or not it is worth exchanging your annuity for one with higher interest rates or more generous benefits. Compare up to five quotes for a 1035 exchange using our online quote locator.