The world of finance, connected.
⌕
EN / Global
Se
Financial encyclopediaReviewed 2026-10-23

Section 1035

This part of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying tax on the income and investment gains in your current account. But you may have to pay surrender charges on your old annuity if you are still within the surrender period.

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Section 1035 [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

This part of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying tax on the income and investment gains in your current account. But you may have to pay surrender charges on your old annuity if you are still within the surrender period. [1]

Frequently asked questions

What does Section 1035 mean in the cited reference?

This part of the U.S. tax code allows you to exchange an existing variable annuity contract for a new annuity contract without paying tax on the income and investment gains in your current account. But you may have to pay surrender charges on your old annuity if you are still within the surrender period. [1]

Sources and review dates

  1. US SEC · Investor.gov — Section 1035 ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.