Products第 23 / 110 题

Which of the following exchanges does NOT qualify for tax-free treatment under Section 1035?

a.An annuity contract exchanged for a life insurance policy
b.A life insurance policy exchanged for an annuity contract
c.A life insurance policy exchanged for another life insurance policy
d.An annuity contract exchanged for another annuity contract

解析

Section 1035 permits life-to-life, life-to-annuity, and annuity-to-annuity exchanges, but not annuity-to-life, because that would move funds from a contract whose gains are always taxable into one whose death benefit can pass income tax free. The other three combinations are expressly allowed. Representatives must confirm the direction of the exchange before recommending it.

法律依据: Internal Revenue Code Section 1035

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