When should I make a 1035 exchange?
A 1035 exchange allows you to move an annuity from one provider to another without an unnecessary tax penalty. Consider making a 1035 exchange to lower product fees or gain other advantages.
If you withdraw money from an annuity during the contract's surrender period, you may have to pay a surrender charge to the annuity issuer. After the period expires, a 1035 exchange allows you to move one annuity into another one without a tax penalty.
Why should I consider exchanging my current annuity?
- Low management fees (low-cost).5
- Our deferred variable annuities have no surrender charges.
- The less you pay in annuity fees, the more you'll potentially have to turn into retirement income.
What should I consider?
Before transferring assets or replacing an existing annuity, be sure to carefully consider the benefits of both the existing and new product. There will likely be differences in features, costs, surrender charges, services, company strength and other important aspects.
There may be tax consequences associated with the transfer of assets and an exchange may not always be your best option. Consult with your advisor regarding your particular situation.