Customer Service

Tax Information FAQs

  • What is Form 1099R?
  • Form 1099R is a form required by the Internal Revenue Service and is used by payors to report any taxable gain distributions of $1.00 or more from retirement or profit-sharing plans, individual retirement arrangements (IRAs), simplified employee pensions (SEPs), annuities or insurance contract.
  • What is Form 1099-INT?
  • Form 1099-INT is a form required by the Internal Revenue Service and is used by payors to report cumulative annual payments of interest of $10 or more during the year.
  • What is Form 5498?
  • Form 5498 is a form required by the Internal Revenue Service and is used to report regular and roll-over contributions on individual retirement arrangements, including Traditional and Roth IRAs. The amount stated on the Form includes all contributions made the previous tax year (e.g., 2009) and all contributions made through April 15 of the year you received the Form (e.g., 2010) (if you designated them to the previous year). The amount stated on the Form may not be reflected in that year's fair market value.
  • What is cost of insurance? (Qualified contract; 403(b)'s, HR10's Pension, IRA's)
  • A universal life or variable universal life contract provision; the cost of insurance is the amount deducted monthly from the accumulation value to cover the pure insurance protection provided by the policy. The amount deducted is based on a number of factors such as age, rating and net amount at risk.
  • What is the minimum amount of interest that can be earned before Form 1099-INT is required?
  • Interest earned of $10 or more for the taxpayer in a tax year must be reported on Form 1099-INT. Interest is accumulated by taxpayer identification number and is not accumulated separately by each policy.
  • What is backup withholding?
  • Backup withholding is the amount of federal income tax that the IRS requires us to withhold from interest earned if one of the following occurs:

    A taxpayer (payee) has failed to furnish his or her taxpayer identification number to the payor.

    The IRS notifies the payor that the taxpayer identification number furnished by the payee is incorrect; or

    The IRS informs the payor that the taxpayer has failed to fully report earned income.

  • When are the 1099-INT, 1099R and 5498 forms and the Fair Market Value and Cost of Insurance statements mailed?
  • 1099R, 1099-INT forms and Fair Market Value statements:

    On or before the IRS deadline of January 31 (must be postmarked Jan 31st or before)

    Form 5498:

    On or before the IRS deadline of May 31 (only sent if contributions or rollovers were made during the tax year)

    Cost of Insurance statement:

    Generally mailed the first week of December

  • How do I request duplicates of Forms 1099-INT, 1099R or 5498, if I did not receive them or if I have misplaced them?
  • The IRS deadline to mail our forms is January 31. Please allow mail time after this date before you request a duplicate. To request a duplicate, please use the Contact Us section of this Web site to contact the appropriate customer service center associated with your policy.
  • Should I receive one Form 1099-INT for each policy?
  • No. Because interest is accumulated under the policy owner's taxpayer identification number and not per policy, the interest earned from multiple policies will be combined into one Form 1099-INT. There is a detail section on the 1099-INT showing policies numbers and interest earned for each.
  • My policy is an HR10 or tax sheltered-annuity. Why did I receive Form 1099-INT?
  • If you withdrew money from you HR10 or tax sheltered-annuity, the part you withdrew lost its tax-deferred status and is reportable. For more information, please use the Contact Us section of this web site to contact the appropriate customer service center associated with your policy.
  • I have an IRA that I rolled to another company or I received Form 1099R on funds that I rolled over into an IRA. How do I report that on my tax return?
  • Consult your tax advisor, IRS Publication 17 and Pub 590, or follow the instructions on your tax form. The IRS requires the policy owner to receive Form 1099R, even if the funds were rolled over tax-free to another IRA.
  • The ownership of my policy has been changed. Who is responsible for reporting the income on this policy on a federal income tax return?
  • Consult your tax advisor. The policy owner at the time the interest was earned will receive Form 1099-INT for reporting. The policy owner on the anniversary date (date interest is applied to contract will receive a 1099-INT).
  • Why is there an amount reflected in the state tax-withheld box?
  • Consult your tax advisor. Some states require mandatory withholding of state income tax. The amount of the tax withheld should be included on your state income tax return.
  • What if my policy is a modified endowment contract (MEC) and I wish to request a loan, partial withdrawal, or dividend withdrawal?
  • A signed written request including tax election or a completed Policy Cancellation and Disbursement form (Non-New York) or (New York) is required. Disbursements from a policy that is a MEC may incur a tax penalty. Please consult a tax advisor for more information on these penalties.
  • I have included the dividends and interest earned each year from my policy on my federal income tax return(s), but I believe I may have overstated my taxable income. How do I resolve this situation?
  • Dividend statements were informational forms, the interest was reported to you and the IRS on a 1099-INT form. Please consult your tax advisor
  • Taxes were withheld from my payment when the transaction was processed. How do I report this information?
  • Follow the instructions on Form 1099 or 5498 and in IRS Publication 17, and consult your tax advisor.
  • I have received Form 5498 and my contributions for the current tax year are not reflected in the fair market value amount. Why?
  • If contributions were made after December 31, they will not be included in the fair market value until the following year.
  • I received a 5498 but my contributions are incorrect. Who do I contact?
  • You will need to contact the Service Center at 800-763-8851.
  • I did not receive a 5498 Form. Why?
  • If you did not make a contribution for that tax year, no 5498 is mailed, but information is sent to the IRS.

Main Footer Carousel