i1098q.pdf

Here are the key points summarized:

General Information

• The purpose of Form 1098-Q is to report qualified longevity annuity contracts (QLACs) that provide a guaranteed income stream for life or a set period.
• QLACs are purchased under an employer-sponsored retirement plan, such as a 401(a), 403(a), 403(b), or 457(b) plan.

Filing Requirements

• Issuers of QLACs must file Form 1098-Q annually with the IRS and furnish a statement to participants.
• Filing is required for each calendar year in which premiums are paid, until age 85 or death.

Participant Statement

• A statement must be furnished to participants annually, providing information about their QLAC.
• The statement should include the participant's name, address, and telephone number (if available).

Box-by-Box Instructions

• Boxes 1a and 1b: Report the annuity amount and start date if payments have not yet started.
• Box 2: Check if the start date may be accelerated.
• Box 3: Report the total premiums paid through the end of the calendar year.
• Box 4: Report the fair market value (FMV) of the QLAC as of the close of the calendar year.
• Boxes 5a-5l: Report the amount and date of each premium payment.

Additional Requirements

• Truncating participant TINs is allowed on payee statements, but not on IRS filings.
• The issuer's name, address, telephone number, and TIN must be entered in the top-left corner of the form.