1035 from existing to existing

[Allen Trent]

99.9% sure, but here is a Prudential document also stating it can’t be done between existing contracts. Bottom of page 2: https://prudential.assetserv.com/prudential/download/file?assetId=8267481&external=true

What are you trying to accomplish— does one policy need more money deposited?

Are both contracts UL based & non-MECS? If so, take a withdrawal of all cost basis from the one you want to leave, then make a deposit into the one you want to keep. (If WL, could surrender PUAR values to get those out to deposit into UL)

Then, with balance left in the UL after WD of cost basis, it will all be taxable gain. Could then either elect reduced paid up if that carrier offers that. Or, could elect payout annuity to spread the taxable gain back to you over years or you could 1035 the remaining gain into a new Annuity of your choosing

 

[pfg1]

Pretty certain 1035 exchange on life has to be from existing to new policy, not an existing policy. I know code may permit existing annuity to existing annuity, but not existing life to existing life.

I think you nailed it. I don't know any companies that will accept 1035 unless its into a new policy. Maybe someone will, but I don't know any.