Form 1099-R is used to report distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, etc. Proceeds from life insurance policies are generally not taxable to the recipient, unless the contract itself has been sold or there is something unusual about the policy.

Where is the 1099-R sent to the contract owner?

If applicable, a 1099-R is mailed to the contract owner’s address of record. For clients enrolled in electronic delivery, notification of 1099-R availability on the website is sent to the email address on record. The information on the 1099-R is based on the contract owner, not the annuitant (except for 457(b)…

What do you need to know about a 1099-R tax form?

A 1099-R is an IRS tax form that reports distributions from annuities, IRAs, retirement plans, profit-sharing plans, pensions, and insurance contracts. The gross amount of the distribution, taxable amount, employee contributions, tax withholding, and the distribution code are reported to the contract owner and the IRS.

Where is the 1099-R sent to an annuitant?

If applicable, a 1099-R is mailed to the contract owner’s address of record. For clients enrolled in electronic delivery, notification of 1099-R availability on the website is sent to the email address on record. The information on the 1099-R is based on the contract owner, not the annuitant (except for 457 (b) government entity-owned contracts).

When do you receive a 1099-R tax form?

A 1099-R is not issued when a life insurance policy pays its death benefit since life insurance proceeds are not subject to federal income tax. A 1099-R specifically reports taxable income from a retirement account like an IRA or an annuity. It may be that your father owned an annuity through a life insurance company…

Why did my father send me a 1099-R?

A 1099-R specifically reports taxable income from a retirement account like an IRA or an annuity. It may be that your father owned an annuity through a life insurance company which is common, or perhaps that the life insurance policy had a retirement asset component.

When do I need to submit a 1099-R surrender form?

The instructions for Form 1099-R only say that no reporting is required for surrender of the policy if the insurance company reasonably believes that none of the distribution is includible in income. If they know that there is $3,617.96 of taxable gain (implying that it is includible in income), it seems that they must issue a Form 1099-R.