Are 1035 Exchanges tax-free?

Full and partial 1035 Exchanges from one company to another are considered non-taxable as long as they are registered with the same owner(s) and annuitant. This transaction WILL generate a 1099-R; however, it will be coded with a 6 in Box 7, indicating a tax-free event.

Nothing contained herein is intended to be, nor should it be construed as tax or legal advice. If you have a tax question or legal question, please consult your tax professional or attorney.

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