ACORD 1035 Exchange Form | Rollover / Transfer (PDF)

You sign the ACORD 1035 exchange form to move a life insurance policy or annuity from one company to another. When you meet the IRS rules, the move is tax-free under Section 1035 of the tax code, and the same form also handles plain transfers of money and direct rollovers, which is why many agents call it the ACORD transfer form.

The new company hands you the form. After you sign, it asks your old company to send the money straight over, so you never touch it. People search for ACORD 1035, and the form’s own signature block uses that name, but the official number is ACORD 951e, where the “e” marks an eForm.

The form uses insurance words that confuse most people at first. Four terms cover almost everything.

Receiving company

The new company. It gives you the form and gets the money.

Surrendering company

The old company you’re leaving. It sends the money.

Owner

The person who owns the policy or contract and signs the form.

Insured or annuitant

The person the policy or annuity covers, when that’s someone other than the owner.

Four pages, a top block, and six numbered sections, in the order they appear.

1. 1

   Top Block: Receiving Company & Contract

   The new company’s name and addresses, the new or existing contract number, and the receiving company’s DTCC number, which identifies it for electronic money settlement.

2. 2

   Section 1: Surrendering Company & Contract

   The old company’s name, address, and phone number, the account or policy number, the plan type (such as non-qualified, IRA, or Roth IRA), the product type (such as life, annuity, or CD), and the estimated amount. It also lists the names and Social Security numbers of everyone tied to the contract.

3. 3

   Section 2: Surrendering Instructions

   A full or partial exchange, as a dollar amount or a percent, plus the penalty-free amount. You also choose the timing: as soon as possible after the old company has every form, or on a date you pick.

4. 4

   Section 3: Disclosures & Acknowledgments

   Nine numbered promises in small print. They cover the assignment of your contract, cost basis, return of the old policy, maximum issue age, and the rules for transfers and 403(b) moves. Read them before you sign.

5. 5

   Section 4: Taxpayer ID Certification

   You confirm your tax ID number is correct, you’re a U.S. person, and you’re exempt from FATCA reporting. A check box tells the company if the IRS has told you backup withholding applies.

6. 6

   Section 5: Signatures

   The owner signs, plus any joint owner, insured or annuitant, and irrevocable beneficiary. A spouse signs too in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Some old companies also want a signature guarantee. For a 403(b)-to-403(b) move, the employer or plan administrator signs as well.

7. 7

   Section 6: Receiving Company Acceptance

   The new company fills in this part, not you. An officer accepts the assignment and states which plan and product type will hold the money. Part 6B covers e-signatures, where the new company confirms its system follows federal and state law.

These five points come from the wording printed on the form, and they catch people off guard.

One form per old company and contract

The form says to complete one for each surrendering company and contract. Moving two contracts takes two forms.

The contract number decides where the money goes

Fill in the New / Existing Contract Number to add money to a contract you already own. Without it, the form says the funds go to a new contract.

A full assignment ends your old beneficiaries

When you assign the whole contract, you also revoke the beneficiaries on the old policy. Name new ones on the new contract.

The money earns nothing in transit

The new contract earns no value until the receiving company gets the money. Neither company answers for market changes during that gap.

Fees and extra forms

The old company may charge surrender fees, and either company may want its own forms. Ask both before you sign.

Section 1035 only covers certain swaps. The form also moves plain transfers and direct rollovers, such as IRA and 403(b) money.

Life insurance to life insurance

Allowed.

Life insurance to an annuity

Allowed.

Annuity to an annuity

Allowed.

Life insurance or annuity to long-term care

Allowed when the new contract is a qualified long-term care policy.

Annuity to life insurance

Not allowed. Many people expect this one to work, but it doesn’t.

A partial exchange moves only part of an annuity and leaves the rest where it is. The form says the IRS spreads your cost basis across both contracts by percentage, so if you move 30% of a $100,000 contract with a $50,000 cost basis, $15,000 of that basis goes to the new contract. Then wait. A withdrawal or surrender from either contract within 180 days can put the tax-free status at risk, and the one exception the form names is payments as an annuity for life or for 10 years or more. Not every company accepts partial exchanges, so confirm first, and ask a tax advisor before you start, as the form itself tells you to.

• ACORD 37
  Statement of No Loss
• ACORD 35
  Policy Release / Cancellation Form