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This is the easiest way to buy your annuity without having to meet with an insurance salesman. The free report you receive lists quotes from more than 10 well-rated insurance companies. When youre ready to buy your annuity we send you a pre-filled application which you mail to the insurance company you choose. This ensures your policy is issued promptly and correctly

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Immediateannuities.com ImmediateAnnuities.com is an online information exchange service for use by the general public.

ImmediateAnnuities.com is the website of Hersh Stern, one of the nation's leading online annuity brokers. From his office near Princeton, New Jersey, Hersh has been publishing the Annuity Shopper magazine since 1986 and offering leading edge annuity services to consumers. Hersh also provides annuity consulting services to hundreds of corporate pension clients. Some of these companies include Bulova Watch, Coulter Corp., Gumps, McCall's, Richardson-Vicks, Tokio Marine, Velcro Corp., and Wickes Furniture, among other well-known businesses. For the past decade, ImmediateAnnuities.com has been rated the #1 consumer website for immediate annuities by the editors of BusinessWeek, Smart Money, WSJ, and Kiplingers. We invite you to read their glowing reviews below. When you're done, please feel free to use our Instant Immediate Annuity calculator.
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1. Our Company o About Us o Annuity Museum o Contact o More Buyer Testimonials o Museum of Insurance o Our Corporate Clients o Privacy Policy o Verified Customer Reviews TrustPilot Reviews REAL PEOPLE. REAL OPINIONS. "They provided accurate information without any hype or sales pressure. Better than using a local agent." - Richard Dale "They were very good at finding the best deal. They answered all my questions and their follow-up was exceptional."- Richard Delfin "Despite my initial concerns about handling a large financial matter on the internet, I would not hesitate to use their service again." - Greg Leonard "Their annuities were well-rated and easily beat my employer's offer (federal TSP program)."- William Sessums Read More Verified Testimonials 2. Rates & Quotes o Annuity Calculators o Annuity Quotes o Annuity Rates o Annuity Tables o Comparative Annuity Reports o Deferred Annuities o Fixed Index Annuities

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TrustPilot Reviews REAL PEOPLE. REAL OPINIONS. "They were truly more concerned about helping me get what I wanted than making a sale." - David Roseman "I checked other annuity sites and their rates were disappointing. When I discovered this site, within a matter of days I was able to buy a top annuity."Joanne Robson "I purchased two annuities from them, one in 2009, and another in 2012. Both times I contacted several annuity providers and on both occasions they beat the competition hands down!"- George Ekel Read More Verified Testimonials 3. News & Insights o 1035 Annuity Exchange o Annuity Library o Insurance Company Ratings o Roll Over IRA or 401k o State Guaranty Associations o Taxation of Annuities o Variable Annuities TrustPilot Reviews REAL PEOPLE. REAL OPINIONS. "They are the most efficient, no-nonsense annuity agents you will find. I would recommend them to my friends." - John Lawton "Everything went like clockwork from first contact to receiving my first payment. Thank you!" - John Saundercook "Their instructions were spot-on. The transaction was completed in a matter of days, without my having to leave the house!" - Eugene Duff "There never was any pressure to "close" me." - Bernard Harrigan

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Home 1035 Annuity Exchanges

1035 Exchange for Replacing an Annuity or Life Insurance Policy

The replacement of an annuity or life insurance policy; i.e. the exchange of existing policies for new ones purchased from different companies without tax consequences, is called a Section 1035 Exchange. To retain the tax advantages of such an exchange, it must meet the requirements of Section 1035 of the Internal Revenue Code for the transaction to be tax-free. A 1035 Exchange allows the contract owner to exchange outdated contracts for more current and efficient contracts, while preserving the original policy's tax basis and deferring recognition of gain for federal income tax purposes.

Reasons for Using a 1035 Exchange:

To avoid current income taxation on the gain in the "old" contract. Generally, the surrender of an existing insurance contract is a taxable event since the contract owner must recognize any gain on the "old" contract as current income. However, under IRC Section 1035 when one insurance, endowment, or annuity contract is exchanged for another, the transfer will be nontaxable, provided certain requirements are met. The IRS has indicated through Private Letter Rulings that it will apply a strict interpretation to the rules. For a transaction to qualify as a 1035 Exchange, the "old" contract must actually be exchanged for a "new" contract. It is not sufficient for the policyholder to receive a check and apply the proceeds to the purchase of a new contract. The exchange must take place between the two insurance companies.

To preserve the adjusted basis of the "old" policy. Preserving the adjusted basis is preferable in situations in which the "old" contract currently has a "loss" because its adjusted basis is more than its current cash value. The adjusted basis is essentially the total gross premiums paid less any dividends or partial surrenders received. This basis carryover is important when the owner has a high cost basis in the "old" contract. For example, Jane Smith has a Whole Life policy she purchased 15 years ago. She paid $1,000 annual premium for the last 15 years and has received $5,000 in policy dividends. The policy currently has $6,000 in cash value. Jane's cost basis is $10,000 (15 x $1,000 less $5,000 dividends.) If Jane did not exchange the "old" policy for the "new" one, but rather surrendered it and purchased the "new" policy with the $6,000 surrender value, she would only have a $6,000 basis in the "new" policy. If, however, she exchanges the "old" policy, she will preserve the $10,000 cost basis.

Requirements & Guidelines

The owner and insured, or annuitant, on the "new" contract must be the same as under the "old" contract. However, changes in ownership may occur after the exchange is completed. The contracts involved must be life insurance, endowment, or annuity contracts issued by a life insurance company. These are the types of exchanges which are permitted: from an "old" life insurance contract to a "new" life insurance contract; from an "old" life insurance contract to a "new" annuity; from an "old" endowment contract to a "new" annuity contract; and from an "old" annuity contract to a "new" annuity contract. (Note: An "old" Annuity contract cannot be exchanged for a "new" life insurance contract.) Two or more "old" contracts can be exchanged for one "new" contract. No limit is imposed on the number of contracts that can be exchanged for one contract. However, all contracts exchanged must be on the same insured and have the same owner. The adjusted basis of the "new" contract is the total adjusted basis of all contracts exchanged. The death benefit for the "new" contract may be less than that of the exchanged contract, provided that all other requirements are met. Face amount decreases within the first seven years of an exchanged may result in MEC status. When the face amount is reduced in the first seven years, the seven-pay test for MEC determination is recalculated based upon the lower face amount. Under current tax law, contracts exchanged must relate to the same insured. Any addition or removal of insureds on the "new" contract violates a strict interpretation of the regulations. For example, you cannot exchange a single-life contract for a last-to-die contract or vice versa. Under certain circumstances you may exchange a contract with an outstanding loan for a "new" contract. This depends on the guidelines followed by the insurance company with whom the "new" contract is to be taken out. One possibility would be for the loan to be canceled at the time of the exchange. If there is a gain in the contract, cancellation of the loan on the "old" policy is considered a distribution and may

be a taxable event. One way of avoiding this result would be to pay off the existing loan prior to the exchange. Exchanging a deferred annuity for an immediate annuity qualifies for tax deferral under IRC Section 1035. However, avoidance of the 10% will depend upon which of the IRC Section 72 exceptions the client is relying upon: 1. Payments made on or after the date on which the taxpayer becomes 59 will avoid the 10% penalty. 2. Payments that are part of a series of substantially equal periodic payments made for the life expectancy of the taxpayer or the joint life expectancies of the owner and his or her beneficiary will also avoid the 10% penalty. 3. Payments made under an immediate annuity contract for less than the life expectancy of a taxpayer who is under age 59 probably will not avoid the 10% penalty. IRC Section 72 requires that the immediate annuity payments begin within one year of the purchase. The IRS will most likely contend that the purchase date of the "new" contract will relate back to the date of the original purchase of the deferred annuity. Since it is unlikely the original annuity was purchased within one year of the "new" annuity's starting date, the payments will probably not qualify for this exception.

Assignment to Insurer
The transfer of ownership in the old policy(ies) to the new insurer is effected with an irrevocable assignment by the owner to the insurer, with a designation of the insurer as both owner and beneficiary of the old contract. The parties to the exchange will then be: (1) the owner of the "old" contract; (2) the insurer of the "old" contract; and (3) the "new" insurer. The owner makes an absolute assignment of the "old" contract to the "new" insurer by notifying the "old" insurer, in writing. The "new" insurer then surrenders the old policy to the "old" insurer, and applies the proceeds of the surrender to a newly issued contract on the same insured. The Notice of Assignment and Change of Beneficiary form, as well as the Notice of Intent to Surrender, should make reference to the owner's intention to effectuate a 1035 Exchange. The policy assigned to the "new" insurer will ordinarily have a stated value. Therefore, the "new" insurer receives valuable consideration upon assignment to it of the "old" policy. For this reason, the "old" policy should not be assigned to the "new" company unless a favorable underwriting decision has been made and accepted by the policyholder (this is especially important for life insurance exchanges). Do you have questions about annuities? You can speak with an annuity expert toll-free at 800-872-6684 (Monday-Friday, 9AM-5PM EST). Or, send your questions and comments by email here. We'll get back to you quickly with an answer!
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Articles About 1035 Annuity Exchanges

1035 Exchange for Replacing an Annuity or Life Insurance Policy Featured article Partial 1035 Exchanges Original, Apr. 24, 2013 Avoid Drastic Measures with a 1035 Exchange Web Wire, Aug. 24, 2009

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TrustPilot Reviews REAL PEOPLE. REAL OPINIONS. "They provided accurate information without any hype or sales pressure. Better than using a local agent." - Richard Dale "They were very good at finding the best deal. They answered all my questions and their follow-up was exceptional."- Richard Delfin "Despite my initial concerns about handling a large financial matter on the internet, I would not hesitate to use their service again." - Greg Leonard "Their annuities were well-rated and easily beat my employer's offer (federal TSP program)."- William Sessums Read More Verified Testimonials
2. Rates & Quotes o Annuity Calculators o Annuity Quotes o Annuity Rates o Annuity Tables o Comparative Annuity Reports o Deferred Annuities o Fixed Index Annuities o Immediate Annuities o Immediate Annuity Trends o Rated Age Quotes o Secondary Market Annuities

TrustPilot Reviews REAL PEOPLE. REAL OPINIONS.

"They were truly more concerned about helping me get what I wanted than making a sale." - David Roseman "I checked other annuity sites and their rates were disappointing. When I discovered this site, within a matter of days I was able to buy a top annuity."Joanne Robson "I purchased two annuities from them, one in 2009, and another in 2012. Both times I contacted several annuity providers and on both occasions they beat the competition hands down!"- George Ekel Read More Verified Testimonials
3. News & Insights o 1035 Annuity Exchange o Annuity Library o Insurance Company Ratings o Roll Over IRA or 401k o State Guaranty Associations o Taxation of Annuities o Variable Annuities

TrustPilot Reviews REAL PEOPLE. REAL OPINIONS. "They are the most efficient, no-nonsense annuity agents you will find. I would recommend them to my friends." - John Lawton "Everything went like clockwork from first contact to receiving my first payment. Thank you!" - John Saundercook "Their instructions were spot-on. The transaction was completed in a matter of days, without my having to leave the house!" - Eugene Duff "There never was any pressure to "close" me." - Bernard Harrigan Read More Verified Testimonials
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Do you have questions? Ask an annuity expert: 800-872-6684 (9-5 EST)

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Our Corporate Clients (2)

Since 1984, hundreds of private and publicly-traded companies, municipalities, and not-for-profit agencies have purchased their annuities through Hersh Stern's comparative annuity shopping service. These business entities are educated buyers. They searched the nation for the top annuity broker and selected us to represent them. To learn more about our annuity services call 800-872-6684. Company American Capital Corp American Int'l Container American Paper Products American Technical Industries American Trust & Savings Argo Delta Marine Armstrong Industries, Inc. Astronet Ayres Corporation Auburn Memorial Hospital Barco Banking Corporation Berks Products Corp Boca Raton Community Church Brent Chemicals Brostrom Bruce-Rogers Company Bulova Watch Company C.M. Smillie California Microwave Premium Company Premium $ 2,800,000 2,800,000 303,000 219,000 842,000 763,000 657,000 611,000 399,000 2,152,000 273,000 263,000 2,279,000 241,000 303,000 118,000 431,000 1,008,000 222,000

$ 3,533,000 Jersey Mortgage Company 112,000 John Hassall 2,253,000 Joyce Dayton 668,000 KAL Equipment 227,000 Kaye International 520,000 Klaus Radio 3,000,000 LA County Retirement Plan 324,000 Largent Roofing 314,000 Lark Luggage, Inc. 5,049,000 Laurentian Capital 1,846,000 Liberty Glass 163,000 Lindell Trust Co. 351,000 Lion Ribbon Company 300,000 Lorden Distributing 101,000 Louis G. Freeman Co. 1,003,000 Madison Community Hospital 56,153,000 Mahoning Valley 350,000 Malabar-Art Mall 433,000 Mansfield Screw, Inc.

Carl Svenson Carter Ledyard Charles Jourdan Boutique Children's Hospital City of Ada Retirement P1an City of Canyon City City of Treasure Island Claxton Manufacturing Coastal Iron Works Cohn-Daniel Consolidated Lumber Conway Memorial Hospital Cornell Young Coulter Corporation Courier Cummins D & B Steel Corporation Delaware Mutual Insurance Co. Dispatch Printing Dyco Petroleum Easter Seals of Washington El Da, Inc. Electrographic Electronic Associates, Inc. Facile Holdings, Inc. Family Services of Philadelphia

846,000 Marine Bank Wisconsin West 600,000 McCabe Powers 310,900 McCall Pattern, Inc. 132,000 Michigan Hospital 419,000 Mid-Dakota Clinic 377,000 Midwest Body 148,000 Milwaukee Jewish Home 241,000 Mosley Manufacturing 370,000 NH Distributors 218,000 Nationwide Advertising Co. 511,000 Nelson Pontiac 329,000 N. Amer. Brass & Aluminum 434,000 Northern Pump Company 16,035,000 O.K. Feed Co. 108,000 Pandora, Inc. 1,474,000 Panola General Hospital 245,000 Pasadena Refinishing 382,000 Penn Ventilator 122,000 Pennock Hospital 3,391,000 Peoples Bank 529,000 Pennsylvania Shipbuilding 156,200 Phillip Brothers 1,204,000 Pittsburgh Tube 10,000,000 Platt Saco Lowell, Inc. 246,000 Plyfiber 425,000 Printing Industries of America

450,000 2,358,000 5,906,000 384,000 120,000 961,000 230,000 319,000 1,191,000 1,318,000 407,000 684,000 1,698,000 836,000 2,829,000 260,000 206,000 438,000 1,170,000 559,000 1,213,000 3,220,000 4,711,000 7,700,000 273,000 457,000

Farmers National Bank Faxton Children's Hospital Fenestra Corporation First City Bank Corporation First Federal of Charleston First National Bank of Dubuque First Nat'l Bank of New Boston First National Bank of Okmulgee First Philson Fishburn Dry Cleaners Foodhaven Freeman Manufacturing Fuller Group Gates Albert, Inc. Geo. Spengler Gerlach Gray & Sons Ground Pat'i Gumps Hamm Sanitation Harris O. Machus Harte Hanks Radio, Inc. Hawkeye Chemical Henry Valve Hills & Dales General Hospital Hoche, Inc.

243,000 Prior Chemical 3,187,000 Queens Steinway 1,561,000 RTC Transport 2,669,000 Ranken-Jordan Home 2,162,000 Richardson Vicks 341,000 Riverside 1,055,000 Rock Island Bank 836,000 SIA America 227,000 SMACNA 1,361,000 Sager Spuck 1,301,000 Saint Therese Hospital 235,000 Samuel Bingham Company 642,000 Schumacher & Co. 336,000 Servend 315,000 Sharpsville 976,000 South Jersey Hospitals 1,312,000 Star Manufacturing 199,000 Stephan Company 1,038,000 Stonewall Jackson Hospital 184,000 Struthers Dunn, Inc. 237,000 Suit-Kote 940,000 Supermercados Co-op 3,292,000 Tokio Marine 1,275,000 Union National Bank 445,000 United Hospitals of Newark 569,000 Velcro Corporation

812,000 776,000 1,270,000 422,000 491,000 136,000 461,000 3,768,000 312,000 206,000 6,075,000 3,762,000 1,806,000 544,000 418,000 583,000 1,285,000 5,302,000 270,000 3,843,000 304,000 335,000 942,000 2,933,000 6,497,000 737,000

Holstein Association Holt Krock Clinic Huntington IBEW #78070 Retirement Plan IBEW #78071 Retirement Plan ITT Grinnell, Inc. Independent Bankshares Isabella Nursing Home J. Gus Lallande

5,535,000 Virgin Islands Rum Co. 8,161,000 Waber-Odell 201,000 Walker Art Center 2,200,000 Warren Hospital 700,000 Wickes Furniture Company

191,000 832,000 102,000 550,000 18,000,000

684,000 Woonsockett Fogarty Hospitals 7,315,000 2,300,000 Work-O-Lite 128,000 YMCA of Metropolitan Dallas 677,000 Youngstown Welding Corp. 675,000 393,900 7,953,000

Simply put, when it comes to annuities, we promise you the kind of attention you deserve. Whatever you need, whenever you need it, you can count on us. Continue to browse our web site or just call 800-872-6684 to contact a Customer Care representative, or use our contact page. We'll get back to you quickly!