Code 6 is for nontaxable 1035 exchange but reportable because the contract will be with another trustee or issuer.  PA conforms to the IRC and does not require a modification for §1035 exchange.

Is $31,000 reported in Box 1 and $16,000 in Box 2a?  If not, in which box are the numbers reported?  And are there any other codes on the form besides 6?