1035 Exchange – Life Insurance
I know this is an IRA forum, but I’m hoping you can help me with a general tax question. If a cash value life ins. policy with an outstanding loan is exchanged, but the loan balance is not transferred to the new insurance company, are there any tax consequences that could result from that outstanding loan?
Permalink Submitted by Al Fry on Fri, 2007-08-31 20:58
The loan is taxed, to the extent of gain.