Question #$15$ of $50$

When effecting an annuity contract exchange under IRC Section $1035,$ it results in

A$)$ an automatic additional $10\%$ early distribution penalty

B$)$ not violating the early $($pre$-$age $\frac{591}{2})$ distribution rules

C$)$ immediate income taxation on cumulative annuity earnings to$-$date

D$)$ not violating the required minimum distribution requirements