Sorry, you need to enable JavaScript to visit this website.
Skip to main content

Advisors' Advice: When Should Clients Exchange Variable Annuities?

MELANIE WADDELL
October 01, 2019

The Internal Revenue Service allows clients to exchange one VA contract for a new one without paying tax on the income and investment gains earned on the original contract through a 1035 exchange, FINRA notes, which “can be a substantial benefit — and is often used as a selling point.” However, this tax benefit comes with “some important strings attached,” as FINRA notes in a recent investor alert.