TD 9673 - Longevity Annuity Contracts

Userid: CPM

AH XSL/XML

Schema:
Leadpct: 100%
instrx
Fileid: … ons/I5498A/2014/A/XML/Cycle01/source

Pt. size: 9.5

Page 1 of 2

Draft

Ok to Print

(Init. & Date) _______

8:04 - 6-Nov-2014

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2014

Instructions for Form 1098-Q

Department of the Treasury
Internal Revenue Service

Qualifying Longevity Annuity Contract Information
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 1098Q and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/form1098q.

What's New
New Form 1098-Q and Instructions for Form 1098-Q.
Beginning after July 1, 2014, the form and instructions
implement new reporting requirements under Treasury
Decision (TD) 9673. Additionally, TD 9673 provides
guidance necessary for compliance with the required
minimum distribution rules under section 401(a)(9) applicable
to an individual retirement annuity and account (IRA) or a
plan than holds a longevity annuity contract.

Reminder

In addition to these specific instructions, you should also use
the 2014 General Instructions for Certain Information
Returns. Those general instructions include information
about the following topics.
Who must file (nominee/middleman).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
Statements to recipients.
Taxpayer identification numbers.
Backup withholding.
Penalties.
Other general topics.
You can get the general instructions at www.irs.gov/
form1098q or by calling 1-800-TAX-FORM
(1-800-829-3676).

Specific Instructions

File form 1098-Q, Qualifying Longevity Annuity Contract
Information if you issue any contract that is intended to be a
qualifying longevity annuity contract (QLAC). A QLAC is an
annuity contract that is purchased from an insurance
company for an employee and that, in accordance with the
rules of application of paragraph (d) of Treasury Regulations
1.401(a)(9)-6, Q&A 17 (Q&A 17), satisfies each of the
following requirements.
Premiums for the contract satisfy the requirements of
paragraph (b) of Q&A 17.
The contract provides that distribution under the contract
must commence no later than a specified annuity starting
date that is no later than the first day of the month
immediately following the 85th anniversary of the employee
birth.
The contract provides that, after distribution under the
contract commence, those distributions must satisfy the
requirements of Q&A 17 (other than the requirement that

Nov 06, 2014

annuity payments commence on or before the required
beginning date.
The contract does not make available any commutation
value benefit, cash surrender value , or other similar feature.
No benefits are provided under the contract after the death
of the employee other than the benefits described in Q&A 17
(c).
When the contract is issued, the contract (or a rider or
endorsement with respect to that contract) states that the
contract is intended to be a QLAC.
The contract is not a variable contract under IRC section
817, an indexed contract, or similar contract except to the
rules provided by the commissioner.

Who Must File

Any person who issues a contract purchased or held under
any plan, annuity, or account described in IRC section
401(a), 403(b), 408 (other than a Roth IRA), or eligible
governmental plan under section 457(b), must file Form
5498-A.

Furnishing Statements to Participants

If you are required to file Form 1098-Q, you must furnish a
statement to the participant annually. For more information
about the requirement to furnish a statement to each
participant, see part M in the 2014 General Instructions for
Certain Information Returns.
Truncating participant's identification number on
payee statements. Pursuant to Treasury Regulations
section 301.6109-4, all filers of this form may truncate a
participant's identification number (social security number
(SSN), individual taxpayer identification number (TIN),
adoption taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
filer's identification number may not be truncated on any
form. See part J in the 2014 General Instructions for Certain
Information Returns.
Manner and time for filing. You must Form 1098-Q with
the IRS and furnish a statement to the individual in whose
name the contract has been purchased for each calendar
year beginning with the year in which the premiums for a
contract are first paid and ending with the earlier of the year
in which the individual in whose name the contract has been
purchased attains age 85 or dies. If the individual dies and
the sole beneficiary under the contract is the individual's
spouse (in which case the spouse's annuity would not be
required to commence until the individual would have
commenced benefits under the contract had the individual
survived), you must file Form 1098-Q and provide a
statement annually to the spouse until the year in which the
distributions to the spouse begin or the year in which the
spouse dies, if earlier.

Cat. No. 67096Y

Page 2 of 2

8:04 - 6-Nov-2014

Fileid: … ons/I5498A/2014/A/XML/Cycle01/source

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Issuer's Name, Address, Telephone Number,
and Federal Identification Number Boxes

Box 1b. Annuity Start Date

If the payments have not yet started, enter the annuity
starting date on which the annuity is scheduled to start.

Enter the name, address (including street address, city or
town, province or state, country, and ZIP or foreign postal
code) and telephone number of the entity with the filing
requirement (issuer) in the box in the upper left corner. The
telephone number must allow a participant to reach a person
knowledgeable about the information reported on the form.

Box 2.

Check the box if payments have not yet started and the start
date may be accelerated.

Box 3. Total Annual Premiums

Name of Plan, Number, and Employer
Identification Number

Enter the cumulative total amount of all premiums paid for the
contract through the end of the calendar year.

Enter name of the plan sponsor who purchased the contract,
the number of the plan and the employer identification
number of the plan sponsor.

Boxx 4 Fair Market Value of QLAC

Enter the fair market value (FMV) of the QLAC as of the close
of the calendar year.

Box 1a. Annuity Amount on Start Date

Boxes 5a through 5l

If the payments have not yet started, enter the amount of the
periodic annuity payable on the start date.

Enter the amount of each premium paid for the contract and
the date of the premium payment.

-2-

Instructions for Form 5498-A (2014)