Yes, assume that you are going from a non-qualified annuity into another non-qualified annuity....or from life insurance into a non-qualified annuity. Section 1035 of the IRC has to do with allowing a cash surrender to be a deferred tax event, instead of a currently taxable event. For the exam I would always assume the annuity is funded with after-tax dollars, thus non-qualified. If the question wants you to think pre-tax dollars it will have to say TSA, 403(b) or qualified annuity. Great question. Keep up the good work! 😀
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12:22 Lmao saw that one coming 😆💀
Re: question 10, So the separate account that a Variable Life policy has is not 'self-directed', but a VUL separate account is?
Yes, that is correct! 😀
Question 7 is assuming that the Annuity you are doing the 1035 exchange for is Non-Qualified rather than Qualified, correct?
Yes, assume that you are going from a non-qualified annuity into another non-qualified annuity....or from life insurance into a non-qualified annuity. Section 1035 of the IRC has to do with allowing a cash surrender to be a deferred tax event, instead of a currently taxable event. For the exam I would always assume the annuity is funded with after-tax dollars, thus non-qualified. If the question wants you to think pre-tax dollars it will have to say TSA, 403(b) or qualified annuity. Great question. Keep up the good work! 😀