How it Works
One unique tax advantage with annuities is that you can transfer money from one annuity to another, income tax-free.
The 1035 exchange provision of the tax code allows annuity owners to:
- Directly transfer the accumulated funds in their annuity policy without taxes.
- Exchange products of the same company and still have their original investment still tax-deferred.
- Pay their taxes when they take out their annuity money for good.
Please contact connie dello buono for additional information on Annuity Exchange.
Title 26, Subtitle A, Chapter 1, Sub chapter O, Part III, Section 1035 states that “no gain or no loss shall be recognized on the exchange of a life insurance policy for another life insurance policy or endowment or annuity policy”.
Contact Connie Dello Buono (insurance broker, CA Life Lic 0G60621) at 408-854-1883 firstname.lastname@example.org to help you find the right annuity based on your financial planning goals. I work with a team of advisors and specialists in 50 US states.