Structured Settlements 4Real®Blog 2026
Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.
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Category: 1035 Exchange
1035 is asection of the United States Internal Revenue Code of 1986, as amended which deals with tax free exchanges of like kinds of insurance, such as annuity to life insurance; annuity to annuity; life to life etc.
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A 1035 Exchange is not permitted into or out of an SMA. The term Secondary Market Annuity is a misleading label, often used by sellers of structured settlement payment rights as a marketing tactic to attract investors in acquired structured settlement receivables. It is not an annuity.
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Structured settlement receivables are NOT annuities and NOT eligible for a 1035 exchange. Holders of retirement annuities may be in for a nasty surprise if they liquidate tax deferred annuities to buy “secondary market annuities”.. It could mean hundreds of thousands in taxes/penalties.. Yuck!