Common questions, answered.

No. A properly executed IRS Section 1035 exchange allows you to transfer funds from one annuity to another without triggering a taxable event. Your cost basis carries over to the new contract.

Section 1035 of the IRS code permits like-kind, tax-free transfers between certain insurance and annuity contracts. The funds move directly carrier-to-carrier — you never take possession, which preserves the tax deferral.

If you're inside a surrender window, there may be charges. A licensed specialist will quantify them precisely and help you weigh the cost against the projected upside. In many cases, modern contracts include bonus credits that offset the charge.

Most 1035 exchanges complete in 2–4 weeks from signed paperwork to a funded new contract.

No. AnnuityReplacement.com provides educational illustrations only. Any decision to exchange your contract should be made in consultation with a licensed financial professional and your tax advisor.

If you choose to work with a licensed specialist who offers a new contract, the issuing insurance carrier compensates them — there is no out-of-pocket cost to you.

No. Your assessment answers are used to generate your illustration. Your contact details are only shared with a licensed specialist if you explicitly request a call.

Newer contracts may already be optimized. The assessment will tell you whether an exchange likely makes sense based on your purchase year, fees, and rider structure.