Tratamiento FiscalPregunta 455 de 716
Which of the following is a permissible tax-free Section 1035 exchange?
a.An annuity exchanged for a life insurance policy
b.A life insurance policy exchanged for an annuity
c.A Roth IRA exchanged for a personal automobile
d.An annuity exchanged for shares in a mutual fund
Explicación
A life insurance policy may be exchanged tax-free for an annuity under Section 1035, but the reverse (annuity to life insurance) is not permitted, because that would move gain into a contract whose death benefit is income-tax-free. Exchanging an annuity for a mutual fund is not a like-kind insurance exchange, and a Roth IRA for a car is not an exchange at all. Remember the one-way rule: life can become an annuity, but an annuity cannot become life insurance under 1035.
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Preguntas relacionadas de este tema
- A life insurance policy becomes a modified endowment contract (MEC) when it:
- Once a policy is classified as a modified endowment contract (MEC), distributions taken during the insured's life, such as loans and withdrawals, are:
- A Section 1035 exchange allows a policyowner to:
- A loan taken against the cash value of a life insurance policy is generally:
- If a policyowner surrenders a whole life policy for its cash value, any amount received above the total premiums paid (the cost basis) is:
- Dividends paid on a participating life insurance policy are generally treated for federal tax purposes as:
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Revisado por John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verificar)