IRS Code 1035 (a) General rulesNo gain or loss shall be recognized on the exchange of—

(1)a contract of life insurance for another contract of life insurance or for an endowment or annuity contract or for a qualified long-term care insurance contract; or [1]
(2)a contract of endowment insurance (A) for another contract of endowment insurance which provides for regular payments beginning at a date not later than the date payments would have begun under the contract exchanged, or (B) for an annuity contract, or (C) for a qualified long-term care insurance contract;
(3)an annuity contract for an annuity contract or for a qualified long-term care insurance contract; or
(4)a qualified long-term care insurance contract for a qualified long-term care insurance contract.

Learn more about 1035 Exchanges involving annuities — Life Health Pro 4.18.008

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