Section 1035 Exchange
A tax-free exchange of an existing annuity contract for a new one.
Investopedia Commentary
In order for the new contract to qualify as a Section 1035 Exchange, the policyholder must have exchanged their existing contract for an equivalent new contract. The annuitant or policyholder must also remain the same. Application of a check received for the old contract against the new contract does NOT qualify.
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See also: Annuitant, Annuity, Eligible Rollover Distribution, Endowment, Internal Revenue Service - IRS, Life Insurance