Instructions For Form 1098-Q - Qualifying Longevity Annuity Contract Information - 2018

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2018
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
requirements of 1.401(a)(9)-6 (other than the requirement
otherwise noted.
that annuity payments commence on or before the required
beginning date).
Future Developments
The contract does not make available any commutation
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
Form1098-Q and its instructions, such as legislation enacted
of the employee other than the benefits described in
after they were published, go to IRS.gov/Form1098Q.
Q&A-17(c).
What’s New
When the contract is issued, the contract (or a rider or
endorsement with respect to that contract) states that the
On-line pdf fillable Copies B and C. To ease statement
contract is intended to be a QLAC.
furnishing requirements, Copies B and C of Form 1098-Q
The contract is not a variable contract under section 817,
have been made fillable on-line in a pdf format, available at
an indexed contract, or similar contract, except to the extent
IRS.gov/Forms1098Q. You can complete these copies
provided by the Commissioner.
on-line for furnishing statements to recipients and for
retaining in your own files.
An employee includes the owner of an IRA (other than a
Reminder
Roth IRA), where applicable.
Limitations on Premiums — Plans
In addition to these specific instructions, you should also use
the 2018 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 $130,000 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 (TINs).
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 for Certain
Percentage limitation. The percentage limitation is an
Information Returns at
IRS.gov/1099generalinstructions
or
amount equal to the excess of 25% of the employee’s
go to IRS.gov/Form1098Q.
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 , the
value of a QLAC is excluded from the account balance that is
For purposes of the dollar and percentage limitations on
used to determine required minimum distributions. A QLAC is
premiums, unless the plan administrator has actual
an annuity contract that is purchased from an insurance
knowledge to the contrary, the plan administrator may rely on
company for an employee under any plan, annuity, or
an employee’s representation, made in writing or such other
account described in section 401(a), 403(a), 403(b), or 408
form as may be prescribed by the Commissioner, of the
(other than a Roth IRA) or eligible governmental plan under
amount of the premiums paid for any other contract intended
section 457(b), and that, in accordance with the rules of
to be a QLAC, but only with respect to premiums that are not
application of paragraph (d) of Regulations section 1.401(a)
paid under a plan, annuity, or contract that is maintained by
(9)-6, Q&A-17 (Q&A-17), satisfies each of the following
the employer or an entity that is treated as a single employer
requirements.
with the employer under section 414(b), (c), (m), or (o).
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
Nov 16, 2017
Cat. No. 67096Y

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