I changed my son's life insurance policy. Cashed one out and immediately put exact amount into another policy. I received a 1099 R. Do I have to report it.

[DDollar · Accepted solution]

Yes, you have to report it.  "Cashing Out" or surrendering a policy for the cash value is a taxable transaction, unless you did a 1035 Exchange.  You would know if you had done a 1035 exchange due to all the paperwork required.

[TomD8]

To add a little info - if you cash in a life insurance policy early, you may have taxable income. If the cash surrender value amounts to more than the premiums paid and you surrender or cancel the policy, the excess is considered earnings and taxable income.