Robert Gill owns and leads Epic Wealth Management, a financial services firm in Red Bank, New Jersey. As a financial advisor, Robert Gill brings to the New Jersey firm an in-depth knowledge of 1035 exchanges and other life insurance and annuity strategies.
The 1035 exchange is a strategy based on Section 135 of the Internal Revenue Code. It provides holders of annuities or life insurance policies with the opportunity to exchange their policies without the tax implication of a surrender or sale.
Some policy holders conduct a 1035 exchange to offset the tax implications of cashing in the product. Others prefer different benefits or features. In many cases, a holder of a fixed annuity will switch to a variable rate policy that may offer better returns.
An annuity holder may exchange his or her product for another annuity, while a life insurance subscriber can change to a new insurance policy or to an annuity. However, one cannot exchange an annuity for a life insurance policy.
A 1035 exchange may constitute a full or partial transfer of the policy or contract. Partial exchanges may result in a cash benefit, but any income from such a transaction is taxable. These transactions are complex, as are full exchanges, so an advisor's assistance is usually necessary.
The 1035 exchange is a strategy based on Section 135 of the Internal Revenue Code. It provides holders of annuities or life insurance policies with the opportunity to exchange their policies without the tax implication of a surrender or sale.
Some policy holders conduct a 1035 exchange to offset the tax implications of cashing in the product. Others prefer different benefits or features. In many cases, a holder of a fixed annuity will switch to a variable rate policy that may offer better returns.
An annuity holder may exchange his or her product for another annuity, while a life insurance subscriber can change to a new insurance policy or to an annuity. However, one cannot exchange an annuity for a life insurance policy.
A 1035 exchange may constitute a full or partial transfer of the policy or contract. Partial exchanges may result in a cash benefit, but any income from such a transaction is taxable. These transactions are complex, as are full exchanges, so an advisor's assistance is usually necessary.
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