what is not allowed in a 1035 exchange 
transfers between qualified accounts such as iras and 401 k s are not characterized as 1035 exchanges under a 1035 exchange the irs disallows the transfer of funds from the account holder to the institution exchanges between like kind accounts where the annuitant or owner on the existing account is not the same on the new account annuity to life insurance endowment to life insurance and annuity to endowment 6