1035 Exchanges 
A 1035 Exchange is a section of the IRS tax code that allows you to transfer funds which have accumulated in one insurance policy to another, without triggering a taxable event. Usually, a 1035 exchange occurs when an annuity holder wants to use his or her annuity funds to secure a better-paying contract.
To take advantage of a 1035 exchange, you must comply with the 'like to like' rules imposed by the IRS:
- Life Insurance cash values can be 1035 exchanged to another Life Insurance Policy.
- Life Insurance cash values can be 1035 exchanged to an Annuity.
- Annuities can be 1035 exchanged to another Annuity.
- An Annuity cannot be 1035 exchanged to a Life Insurance Policy.
FixedAnnuityDirect.com can assist you in the following matters :
- If you want to compare your current contract with other options available.
- If you decide that you would like to exchange the contract, then we can facilitate the completion of the new insurance company's 1035 exchange and replacement forms, etc.
The rules of a 1035 exchange can be complex. If you are interested in using a 1035 exchange to buy a better-performing annuity, we can help you explore your options.
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Midland National 
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