do individuals have to report a 1035 exchange on a tax return 
a 1035 exchange must be reported on a tax return if the funds are transferred from institution to institution the transferring company will issue a 1099 r form recording the amount transferred and a distribution code to denote a 1035 exchange although the transaction is reportable it is not taxable if the exchange occurs in house the financial institution may not issue a 1099 r 7