Discounting any applicable early surrender charges, you can always
transfer from one annuity to another, tax-free by use of a 1035
exchange. This can be between fixed, indexed or even variable
annuities. Your basis remains the same and eventually you or your heirs
will be hit with ordinary income taxes on any gain, but you can roll
from one product to another, continuing to defer taxes. And if your
broker isn't familiar with 1035 exchanges - get another broker.

You should be able to do a 1035 exchange, providing both companies allow
them. This lets you move without incurring a tax event.


"Winter" <downeaster1000[at]yahoo.com> wrote in message
news:1115070191.024837.68860[at]o13g2000cwo.googlegroups.com...
- quote -

Winter wrote:
- quote -

Yes, provided that the funds are transfered from company to company (1035 EXCHANGE)


- quote -


I have not reviewed the Masterdex 10, but I do believe that you MAY have
missread to information. I know of no Annuity offered by an Insurance company
that will NOT permit the Annuitant (or beneficiary) to Annuitize the contract
on a Lifetime payout, or ligfetime with period certain.
Cal Lester CLU

Can a non-qualfied indexed annuity be exchanged for another without tax
consequences?

For example, looking at the Allianz Masterdex10 annuity, I cannot see
that it offers the option of taking payout in the form of a lifetime
annuity or lifetime with period certain. Can an investor grow their
indexed annuity in that type of annuity plan and then when it comes
time to annuitize it, roll it over to an annuity plan that does offer
that type of payout...or do you get hit with taxes when you do a swap
like that? Assume that we would be past any surrender charge periods
and are only talking about taxes.

Thanks for any comments.

Winter