Question #$34$ of $50$

The result of exercising a Section $1035$ exchange for an annuity contract is

A$)$ allowing the contract holder to continue the tax advantages in the new contract

B$)$ allowing the contract holder to establish a new cost basis by paying current tax consequences

C$)$ enabling the contract holder to obtain a one$-$time tax$-$free withdrawal

D$)$ enabling the contract holder to now take advantage of more favorable tax results