The surrender value of an existing deferred annuity or permanent life insurance plan can be transferred into a Navy Mutual annuity without incurring an immediate taxable event. This transfer is called a “1035 Exchange.” To qualify for a tax-deferred 1035 Exchange, the contract must be payable to the same person or person(s). Please be aware that retirement accounts, such as a 401(k) plans, IRAs, etc., will not qualify for a 1035 Exchange to any of Navy Mutual’s annuity products. To ensure that your transfer will qualify, please contact your tax advisor. Please contact your Navy Mutual counselor to receive the necessary forms to perform a 1035 Exchange.
To learn more about tax-deferred exchanges, please call us at 800-628-6011.