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2015

Department of the Treasury

Internal Revenue Service

Instructions for Form 1098-Q

Qualifying Longevity Annuity Contract Information

Section references are to the Internal Revenue Code unless

that annuity payments commence on or before the required

otherwise noted.

beginning date).

The contract does not make available any commutation

Future Developments

benefit, cash surrender right, or other similar feature.

For the latest information about developments related to

No benefits are provided under the contract after the death

Form 1098-Q and its instructions, such as legislation enacted

of the employee other than the benefits described in

after they were published, go to

Q&A-17(c).

When the contract is issued, the contract (or a rider or

What's New

endorsement with respect to that contract) states that the

contract is intended to be a QLAC.

Full year reporting. Form 1098-Q has been modified to

The contract is not a variable contract under section 817,

enable reporting for a full calendar year. Boxes 5a through 5f

an indexed contract, or similar contract, except to the extent

are to be used for reporting payments made in January

provided by the Commissioner.

through June. See the instructions for boxes 5a through 5l,

later.

An employee includes the owner of an IRA (other than a

Reminder

Roth IRA), where applicable.

In addition to these specific instructions, you should also use

Limitations on Premiums — Plans

the 2015 General Instructions for Certain Information

The premiums paid with respect to the contract on a date

Returns. Those general instructions include information

satisfy the limitations requirements if they do not exceed the

about the following topics.

lesser of the dollar limitation of Q&A-17(b)(2) or the

Who must file (nominee/middleman).

percentage limitation of Q&A-17(b)(3).

When and where to file.

Dollar limitation. The dollar limitation is an amount equal to

Electronic reporting requirements.

the excess of $125,000 over the sum of (1) the premiums

Corrected and void returns.

paid on the contract before that date and (2) the premiums

Statements to recipients.

paid on or before that date on any other contract intended to

Taxpayer identification numbers.

be a QLAC and that is purchased for the employee under the

Backup withholding.

plan, or any other plan, annuity, or account described in

Penalties.

section 401(a), 403(a), 403(b), or 408 or eligible

Other general topics.

governmental plan under section 457(b).

You can get the general instructions at

Percentage limitation. The percentage limitation is an

form1098q

or by calling 1-800-TAX-FORM

amount equal to the excess of 25% of the employee’s

(1-800-829-3676).

account balance under the plan (including the value of any

QLAC held under the plan for the employee) as of that date

Specific Instructions

over the sum of (1) the premiums paid before that date on the

contract, and (2) the premiums paid on or before that date on

File Form 1098-Q, Qualifying Longevity Annuity Contract

any other contract intended to be a QLAC and that is held or

Information, if you issue any contract that is intended to be a

was purchased for the employee under the plan.

qualifying longevity annuity contract (QLAC). Prior to

For purposes of the dollar and percentage limitations on

annuitization, the value of a QLAC is excluded from the

premiums, unless the plan administrator has actual

account balance that is used to determine required minimum

knowledge to the contrary, the plan administrator may rely on

distributions. A QLAC is an annuity contract that is purchased

an employee’s representation, made in writing or such other

from an insurance company for an employee under any plan,

form as may be prescribed by the Commissioner, of the

annuity, or account described in section 401(a), 403(a),

amount of the premiums paid for any other contract intended

403(b), or 408 (other than a Roth IRA) or eligible

to be a QLAC, but only with respect to premiums that are not

governmental plan under section 457(b), and that, in

paid under a plan, annuity, or contract that is maintained by

accordance with the rules of application of paragraph (d) of

the employer or an entity that is treated as a single employer

Regulations section 1.401(a)(9)-6, Q&A-17 (Q&A-17),

with the employer under section 414(b), (c), (m), or (o).

satisfies each of the following requirements.

Premiums for the contract satisfy the requirements of

For purposes of the 25% limit, an employee’s account

paragraph (b) of Q&A-17.

balance on the date on which premiums for a contract are

The contract provides that distributions under the contract

paid is the account balance as of the last valuation date

must commence no later than a specified annuity starting

preceding the date of the premium payment, adjusted as

date that is no later than the first day of the month after the

follows.

employee's 85th birthday.

The account balance is increased for contributions

The contract provides that, after distributions under the

allocated to the account during the period that begins after

contract begin, those distributions must satisfy the

the valuation date and ends before the date the premium is

requirements of 1.401(a)(9)-6 (other than the requirement

paid.

Feb 11, 2015

Cat. No. 67096Y

Instructions For Form 1098-Q - Qualifying Longevity Annuity Contract Information - 2015

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