1035 exchange into the best annuity fast.

A 1035 exchange is a tax-advantaged way to roll over an existing insurance product into an annuity without incurring immediate tax liabilities. Here’s how it works for different scenarios:

1. Life Insurance to Annuity

• Tax Deferral: You can exchange a life insurance policy for an annuity and defer taxes on any gains. This allows the funds to continue growing tax-deferred within the annuity.
• Loss of Life Insurance Benefits: The exchange eliminates the life insurance death benefit, converting it into an annuity’s income potential.
• Basis Consideration: If the original life insurance policy's cash value exceeds its basis (what you paid in premiums), this gain is carried over tax-deferred to the annuity.

2. Annuity Replacement (Annuity to Annuity)

• Tax Protected: When exchanging one annuity for another via a 1035 exchange, you preserve the tax-deferred growth of the annuity, postponing taxation until you begin receiving distributions.
• Surrender Charges: Be mindful of potential surrender charges on the original annuity or fees associated with the new annuity.
• Reduced Flexibility: Consider any new terms and conditions, including fees and potential changes in the surrender period on the new annuity contract.

General Considerations

• Same Owner Requirement: For a 1035 exchange, the owner and annuitant (in the case of annuities) must remain the same to qualify for tax deferral.
• No Immediate Income: You must execute a 1035 exchange directly between insurance companies; no funds should be paid out to you directly.

Given the complexities involved, it’s helpful to consult with a financial advisor or tax professional to ensure compliance with IRS rules and to fully understand the impact on your financial strategy.

To get started with a 1035 exchange for your annuity, follow these steps:

1. Select an Annuity: Use the annuity marketplace to compare and choose an annuity that meets your financial goals and needs.
2. Book a Consultation: After choosing an annuity, you’ll be prompted to schedule a call with our 1035 and rollover experts. They will guide you through the process, ensuring that you understand all aspects of the exchange and assisting with the necessary documentation.
3. Prepare Documentation: Gather all relevant information about your current life insurance policy or annuity, including contract details, statements, and personal identification.
4. Application Process: During your call, the experts will help you fill out the necessary paperwork to initiate the 1035 exchange. This often includes completing forms to authorize the transfer from your existing policy to the new annuity.
5. Coordinate with Insurance Companies: The experts will handle the coordination between your current insurer and the new annuity provider to ensure a smooth, direct transfer.
6. Review and Confirm: Once the details are finalized, review the new annuity contract, confirm your acceptance, and ensure that all terms meet your expectations.
7. Finalization: After everything is in place, the 1035 exchange will be executed. At this point, the funds or value from your existing policy or annuity will be transferred to fund the new annuity.

Throughout this process, you’ll have the support of experts to help navigate any complexities or questions that arise. They ensure compliance with regulations and make the transition as seamless as possible.

The participation rate in a fixed indexed annuity determines how much of the gain in the chosen index will be credited to your annuity. It is expressed as a percentage.

For example, if your annuity has a 70% participation rate and the index gains 10%, your annuity would be credited with 7% interest (70% of 10%). This rate allows you to benefit from positive index movements, but you might not receive the full gain as the participation rate limits the share of the index increase that you earn. This covers the insurer's costs to provide you with valuable capital protection.

The participation rate can vary depending on the annuity contract and the specific terms set by the annuity provider. We list all participation rates transparently within our marketplace.

1. Online Application

The application typically takes 15-30 minutes to complete. You can navigate between sections and your progress will be saved automatically, allowing you to exit and return later if needed.

Information Gathering:

• Personal Information: Provide details such as your address, phone number, Social Security Number (SSN), and place of birth.
• Driver's License: Upload a picture of the front of your driver’s license for identity verification.
• Beneficiaries: List the individuals who will inherit the annuity's value should you pass away.
• Financial Overview: Prepare to provide estimates of your income, expenses, assets, and debt, and answer suitability questions to ensure the annuity fits your financial situation.
• Funding Source: Indicate the source of funding, such as a check, wire transfer, ACH deposit, IRA, or annuity exchange. Note that some methods may affect processing times.

2. Application Review

Within 1-2 business days, the team will review your application and reach out for any necessary clarifications. You will receive the final insurer application for review and signature before submission.

3. Insurer Processing

Processing usually takes a few weeks for the insurer to accept the application, process the funding, and issue the policy. Transfers, like a 1035 exchange, might extend this timeframe.

4. Policy Receipt

Once processed, you'll receive formal policy documentation. There's a "Free Look Provision" period (typically 10-30 days) where you can cancel the policy without penalties.

5. Manage Your Annuities

We’ll provide access to an online portal to keep track of your annuity, with assistance available for key milestones, such as when the rate guarantee ends.

This process ensures you have a thorough understanding and control over your annuity application and management.

Our proprietary marketplace provides instant annuity recommendations and transparently outlines key strategy details so you can find the perfect fit fast.

Annuities are designed to provide financial security and predictable returns, but the potential for losing money depends on the type of annuity and its specific features.

Note: At Revise, we only offer market-loss-protected annuities.

Here's a breakdown of the three main types of growth annuities:

Fixed Annuities (offered by Revise):

• Returns: Fixed annuities offer a guaranteed rate of return, meaning your principal and interest are secure. You won’t lose value due to market fluctuations as the insurance company promises a specific interest rate over the term of the annuity.
• Risk: The main risk is not directly losing your principal, but rather the potential erosion of purchasing power due to inflation if the guaranteed rate does not keep pace with inflation over time.

Fixed Indexed Annuities (offered by Revise):

• Market Gains Without Losses: While you can benefit from index-linked gains, you are protected against losses due to market downturns because your principal is not directly invested in the index.
• 0% Floor: Fixed indexed annuities are linked to a stock market index, such as the S&P 500. They have a 0% floor, which means your principal won’t decrease due to negative market returns. If the market returns negative during your credited period, you simply receive a 0%, or no return for that period.
• Risk: While market downturns don't impact your principal, any fees associated with the annuity, such as strategy or rider fees, can decrease your account's accumulation value over time

Variable Annuities (not offered by Revise):

• Market-Dependent Returns: Variable annuities allow you to invest in sub-accounts, which are similar to mutual funds. Your returns are directly linked to the performance of these investments, meaning they can fluctuate with market changes.
• Potential for Gains and Losses: Because returns depend on market performance, variable annuities offer the potential for higher gains compared to fixed annuities. However, they also carry the risk of losing value if the market performs poorly.
• Fees and Charges: Variable annuities tend to have higher fees compared to fixed annuities. These may include management fees, mortality and expense risk charges, and fees for additional features like income or death benefit riders.
• Investment Risk: Unlike fixed or fixed indexed annuities, variable annuities do not provide a guaranteed rate of return or a 0% floor. Your principal is at risk, and you could potentially lose money if the sub-accounts perform poorly after accounting for fees.

Insurers hedge annuity risk by using derivatives contracts or other arrangements to limit the investment risk of the annuities they sell. This can help protect insurers from losses during market downturns. Insurance carriers typically hedge the risk on your annuity policy to their overall portfolio with a mix of index options (calls and puts on the S&P 500, for example), futures, swaps, and making duration-matched, fixed income asset purchases. The actuarial arm at the insurer, establishes and executes the hedging strategy, rather than an investment bank, to pass on the cost savings in the form of more returns.

Revise is a best-in-class, tech-enabled insurance brokerage focused on transparency and providing every customer with an accurate fit. We’ve removed the need for a sales pitch, boring phone call, or visit to an advisors office. We simply show the most competitive, expert-designed strategies from the best insurers, and highlight the closest fit every time with our proprietary technology. Of course, if you prefer speaking to a human, we’re standing-by with lifelong industry professionals who have designed our solution from the ground-up ready to chat. We are proudly based in Chicago, IL.

Yes, it’s totally free to work with us. First, a little understanding of the insurance industry helps. Insurance products are built and backed by insurers, no surprise here, but are introduced to the public though brokerages or independent agents–who receive compensation in the form of a commission. These commissions, which reward the brokerage for placing their products, are paid directly by insurers to the brokerage and not from your returns. You will never see a commission fee from Revise. We are a non-captive brokerage and are not tied to any specific insurer, so we can show you the best fit, everytime.