News | 01.09.19
It's About to Get Easier to do a 1035 Exchange With Annuities
Annuity providers are making a synchronized effort to do business in a more 21st century fashion. That's especially apparent in the realm of 1035 exchanges: tax-free transfers from one annuity contract to another. The Insured Retirement Institute has formed a working group to examine all annuity transactions, which include 1035 exchanges, to determine where technology can improve efficiencies, said spokesman Dan Zielinski. But observers also see a potential risk in speeding up 1035 exchanges: an increase in conflicted sales. Some brokers have used 1035 exchanges as a way to "churn" clients' annuity contracts, since they make a new commission with each exchange.
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