IRC Section 1035 Allows the Owner of an Annuity Contract

question 8

Multiple Choice

IRC Section 1035 allows the owner of an annuity contract to exchange an existing annuity contract for a new one,without:

• A)Paying long-term capital gains tax on the investment gains in the current contract.
• B)Paying ordinary income tax on the investment basis in the current contract.
• C)Paying ordinary income tax on the investment gains in the current contract.
• D)Paying short-term capital gains tax on the investment gains in the current contract.

---

Definitions:

Catch a Cold

A common phrase referring to becoming infected with one of the numerous viruses that cause the common cold, characterized by symptoms like coughing and sneezing.

Gratitude and Joy

Feelings of thankfulness and happiness, often considered beneficial to mental and emotional well-being.

Preventing Disease

Measures and practices aimed at reducing the incidence and prevalence of diseases, including vaccinations, healthy lifestyle choices, and public health campaigns.

Health Care Expenses

Costs associated with medical care, treatments, medications, and hospital services for maintaining, diagnosing, or restoring health.