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                                                                                              Department of the Treasury
                                                                                              Internal Revenue Service
Instructions for Form 1098-Q

(Rev. March 2024)

(Use with the December 2019 revision of Form 1098-Q)
Qualifying Longevity Annuity Contract Information

Section references are to the Internal Revenue Code unless 
otherwise noted.                                                 Specific Instructions
                                                                 File Form 1098-Q, Qualifying Longevity Annuity Contract 
Future Developments                                              Information, if you issue any contract that is intended to be a 
For the latest information about developments related to         qualifying longevity annuity contract (QLAC). Prior to 
Form 1098-Q and its instructions, such as legislation enacted    annuitization, the value of a QLAC is excluded from the 
after they were published, go to IRS.gov/Form1098Q.              account balance that is used to determine required minimum 
                                                                 distributions. A QLAC is an annuity contract that is purchased 
What’s New                                                       from an insurance company for an employee under any plan, 
Increased dollar limitation on premiums.      The dollar         annuity, or account described in section 401(a), 403(a), 
limitation has increased to $200,000. This amount will be        403(b), or 408 (other than a Roth IRA) or eligible 
adjusted for inflation for calendar years beginning on or after  governmental plan under section 457(b), and that satisfies 
January 1, 2024. See Limitation on Premiums—Plans,               each of the following requirements.
Limitation on Premiums—IRAs, and QLACs Purchased                 • Premiums for the contract satisfy the dollar limitation 
Before December 29, 2022, later.                                 described later under Limitation on Premiums—Plans or 
                                                                 Limitation on Premiums—IRAs, as applicable.
Repeal of 25% premium limit.     Premiums will no longer be      • The contract provides that distributions under the contract 
limited to only 25% of an individual's retirement account        must commence no later than a specified annuity starting 
balance. See QLACs Purchased Before December 29, 2022,           date that is no later than the first day of the month after the 
later.                                                           employee's 85th birthday.
Divorce guidelines.  A divorce that occurs after the             • The contract provides that, after distributions under the 
purchase of a qualifying longevity annuity contract with joint   contract begin, those distributions must satisfy the 
and survivor annuity benefits will not affect the permissibility requirements of Regulations section 1.401(a)(9)-6 (other 
of the benefits payable under the contract, provided that        than the requirement that annuity payments commence on or 
certain requirements are met. See Divorce guidelines under       before the required beginning date).
Death of Employee, later.                                        • The contract does not make available any commutation 
                                                                 benefit, cash surrender right, or other similar feature (other 
Short free look period permitted. The right to rescind a         than a right to rescind the contract within a period not 
contract within 90 days following the date of purchase will not  exceeding 90 days from the date of purchase).
cause the contract to fail to be a QLAC. See Specific            • No benefits are provided under the contract after the death 
Instructions, later.                                             of the employee other than the benefits described in 
                                                                 paragraph (c) of Regulations section 1.401(a)(9)-6 (Q&A-17).
Reminders
                                                                 • When the contract is issued, the contract (or a rider or 
In addition to these specific instructions, you should also use  endorsement with respect to that contract) states that the 
the 2019 General Instructions for Certain Information            contract is intended to be a QLAC.
Returns. Those general instructions include information          • The contract is not a variable contract under section 817, 
about the following topics.                                      an indexed contract, or similar contract, except to the extent 
• Who must file.                                                 provided by the Commissioner.
• When and where to file.
• Electronic reporting.                                            An employee includes the owner of an IRA (other than a 
• Corrected and void returns.                                    Roth IRA), where applicable.
• Statements to recipients.
• Taxpayer identification numbers (TINs).                        Limitation on Premiums—Plans
• Backup withholding.                                            The premiums paid with respect to the contract on a date 
• Penalties.                                                     satisfy the limitation requirement if they do not exceed 
• Other general topics.                                          $200,000. This amount is adjusted for inflation for calendar 
  You can get the General Instructions for Certain               years beginning on or after January 1, 2024, with increases 
Information Returns at IRS.gov/1099GeneralInstructions     or    rounded to the next lowest multiple of $10,000.
go to IRS.gov/Form1098Q.
                                                                   For purposes of the dollar limitation on premiums, unless 
Online pdf fillable Copies B and C. To ease statement            the plan administrator has actual knowledge to the contrary, 
furnishing requirements, Copies B and C of Form 1098-Q are       the plan administrator may rely on an employee’s 
fillable online in a pdf format, available at IRS.gov/           representation, made in writing or such other form as may be 
Forms1098Q. You can complete these copies online for             prescribed by the Commissioner, of the amount of the 
furnishing statements to recipients and for retaining in your    premiums paid for any other contract intended to be a QLAC, 
own files.                                                       but only with respect to premiums that are not paid under a 
                                                                 plan, annuity, or contract that is maintained by the employer 

Mar 1, 2024                                               Cat. No. 67096Y

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or an entity that is treated as a single employer with the       only benefit allowed to be paid (except as provided in 
employer under section 414(b), (c), (m), or (o).                 paragraph (c)(4)Q&A-17) after the employee's death is a life 
                                                                 annuity payable to the surviving spouse where the annuity 
Limitation on Premiums—IRAs                                      payment is not in excess of 100% of the annuity payment that 
The premiums paid with respect to the contract on a date         is payable to the employee.
satisfy the limitation requirement if they do not exceed           If the employee dies before the annuity starting date, the 
$200,000. This amount is adjusted for inflation for calendar     only benefit allowed (except as provided in paragraph (c)(4) 
years beginning on or after January 1, 2024, with increases      of Q&A-17) is a life annuity payable to the surviving spouse 
rounded to the next lowest multiple of $10,000.                  where the annuity payment is not in excess of 100% of the 
  For purposes of the dollar limitation on premiums, unless      annuity payment that would have been payable to the 
the trustee, custodian, or issuer of an IRA has actual           employee as of the date that benefits to the surviving spouse 
knowledge to the contrary, the trustee, custodian, or issuer     start. However, the annuity is permitted to exceed 100% of 
may rely on the IRA owner’s representation, made in writing      the annuity payment that would have been payable to the 
or in such other form as may be prescribed by the                employee to the extent necessary to satisfy the requirement 
Commissioner, of the amount of premiums paid for any other       to provide a qualified preretirement survivor annuity (as 
contract intended to be a QLAC and that are not paid under       defined under section 417(c)(2) or ERISA section 205(e)(2)) 
the IRA, and the account balance of any other IRA.               pursuant to section 401(a)(11)(A)(ii) or ERISA section 205(a)
                                                                 (2).
QLACs Purchased Before December 29, 2022                           Any annuity payable to the surviving spouse of an 
Prior to December 29, 2022, a percentage limitation and a        employee who dies before the annuity starting date must 
lower dollar limitation applied to QLAC premiums. If             start no later than the date on which the annuity payable to 
additional premiums are paid under a contract after              the employee would have started under the contract if the 
December 29, 2022, those premiums will be subject only to        employee had not died.
the new premium limitation described above, provided that        Surviving spouse is not the sole beneficiary. In this 
the premiums paid for the contract through December 28,          situation, the only benefit allowed (except as provided in 
2022, satisfied the premium limitations that applied prior to    paragraph (c)(4) of Q&A-17) after death is a life annuity 
December 29, 2022.                                               payable to the designated beneficiary where the annuity 
                                                                 payment is not in excess of the applicable percentage 
Consequences of Excess Premiums                                  (determined under paragraph (c)(2)(iii) of Q&A-17) of the 
If an annuity contract fails to be a QLAC solely because a       annuity payment that is payable (if the employee dies on or 
premium for a contract exceeds the limitation on premiums        after the annuity starting date for the contract) or would have 
described earlier, then the contract is not a QLAC beginning     been payable (if the employee dies before the annuity 
on the date that premium payment is made unless the excess       starting date) to the employee. For more information on the 
premium is returned to the non-QLAC portion of the               applicable percentage, see paragraph (c)(2)(iii) of Q&A-17.
employee’s account in accordance with paragraph (d)(1)(ii)         When the employee dies before the annuity starting date, 
(B) of Q&A-17. If the contract fails to be a QLAC, then the      any life annuity payable to a designated beneficiary (other 
value of the contract may not be disregarded under               than a surviving spouse) must commence by the last day of 
paragraph A-3(d) of Regulations section 1.401(a)(9)-5 as of      the calendar year immediately following the year of the 
the date on which the contract ceases to be a QLAC.              employee's death.
  If the excess premium is returned to the non-QLAC portion      Multiple beneficiaries.   If an employee has more than one 
of the employee’s account by the end of the calendar year        designated beneficiary under a QLAC, the rules in paragraph 
following the calendar year in which the excess premium was      A-2(a) of Regulations section 1.401(a)(9)-8 apply for 
originally paid, then the contract will not be treated as        purposes of paragraphs (c)(1) and (c)(2) of Q&A-17.
exceeding the premium limitation at any time, and the value 
of the contract will not be included in the employee’s account   Divorce guidelines. If there is a divorce after a purchase of 
balance under paragraph A-3(d) of Regulations section            a QLAC with joint and survivor annuity benefits, this does not 
1.401(a)(9)-5.                                                   generally displace the former spouse's status in the contract, 
                                                                 if the divorce or separation instrument:
  If the excess premium is returned to the non-QLAC portion      • Provides that the former spouse is entitled to survivor 
of the employee’s account after the last valuation date for the  benefits,
calendar year in which the excess premium was originally         • Provides that the former spouse is treated as the surviving 
paid, then the employee’s account balance for that calendar      spouse,
year must be increased to reflect the excess premium in the      • Does not modify the former spouse's status as beneficiary 
same manner as an employee’s account balance is                  entitled to the survivor benefits, or
increased under paragraph A-2 of Regulations section             • Does not modify the former spouse as the measuring life 
1.401(a)(9)-7, to reflect a rollover received after the last     for the survivor benefits.
valuation date.
  If the excess premium is returned to the non-QLAC portion      Return of Premiums
of the employee’s account, as described above, it will not be 
treated as a violation of the requirement that the contract not  In general, in lieu of a life annuity payable to a designated 
provide a commutation benefit.                                   beneficiary under paragraph (c)(1) or (c)(2) of Q&A-17, a 
                                                                 QLAC is permitted to provide for a benefit paid to a 
Death of Employee                                                beneficiary after the death of the employee in an amount 
Surviving spouse is the sole beneficiary. If the employee        equal to the excess of the premium payments made with 
dies on or after the annuity starting date for the contract, the 

2                                                                         Instructions for Form 1098-Q (Rev. 03-2024)

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respect to the QLAC over the payments already made under         contract are first paid and ending with the earlier of the year 
the QLAC.                                                        in which the individual in whose name the contract has been 
                                                                 purchased reaches age 85 or dies. If the individual dies and 
If a QLAC is providing or will provide a life annuity to a       the sole beneficiary under the contract is the individual's 
surviving spouse under paragraph (c)(1) of Q&A-17, it is also    spouse (in which case the spouse's annuity would not be 
permitted to provide for a benefit paid to a beneficiary after   required to commence until the individual would have 
the death of both the employee and the spouse in an amount       commenced benefits under the contract had the individual 
equal to the excess of the premium payments made with            survived), you must file Form 1098-Q and provide a 
respect to the QLAC over the payments already made under         statement annually to the spouse until the year in which the 
the QLAC.                                                        distributions to the spouse begin or the year in which the 
                                                                 spouse dies, if earlier.
A return of premium payment under paragraph (c)(4) of 
Q&A-17 must be paid no later than the end of the calendar        Issuer's Name, Address, Telephone Number, 
year following the calendar year in which the employee dies.     and TIN Boxes
If the employee’s death is after the required beginning date, 
the return of premium payment is treated as a required           Enter the name, address (including street address, city or 
minimum distribution (RMD) for the year in which it is paid      town, state or province, country, and ZIP or foreign postal 
and is not eligible for rollover. See the Instructions for Forms code), and telephone number of the entity with the filing 
1099-R and 5498 for further information regarding rollovers      requirement (issuer) in the box in the upper left corner. The 
and RMDs.                                                        telephone number must allow a participant to reach a person 
                                                                 knowledgeable about the information reported on the form.
If the return of premium payment is paid after the death of 
a surviving spouse who is receiving a life annuity (or after the Account Number
death of a surviving spouse who has not yet begun receiving      The account number is required if you have multiple accounts 
a life annuity after the death of the employee), the return of   for a recipient for whom you are filing more than one Form 
premium payment must be made no later than the end of the        1098-Q. Additionally, the IRS encourages you to designate 
calendar year following the calendar year in which the           an account number for all Forms 1098-Q that you file. See 
surviving spouse dies. If the surviving spouse’s death is after  part L in the current General Instructions for Certain 
the required beginning date for the surviving spouse, then the   Information Returns.
return of premium payment is treated as an RMD for the year 
in which it is paid and is not eligible for rollover.            Plan Number, Name of Plan, and Employer 
                                                                 Identification Number
Who Must File                                                    If the contract was purchased under a plan, enter the name of 
Any person who issues a contract intended to be a QLAC           the plan, the plan number, and the employer identification 
that is purchased or held under any plan, annuity, or account    number of the plan sponsor.
described in section 401(a), 403(a), 403(b), or 408 (other 
than a Roth IRA) or eligible governmental plan under section     Box 1a. Annuity Amount on Start Date
457(b), must file Form 1098-Q.                                   If the payments have not yet started, enter the amount of the 
                                                                 periodic annuity payable on the start date.
Furnishing Statements to Participants
If you are required to file Form 1098-Q, you must furnish a      Box 1b. Annuity Start Date
statement to the participant annually. For more information      If the payments have not yet started, enter the annuity 
about the requirement to furnish a statement to each             starting date on which the annuity is scheduled to start.
participant, see part M in the current General Instructions for 
Certain Information Returns.                                     Box 2. Check if Start Date May Be Accelerated
Truncating participant's TIN on payee statements.                Check the box if payments have not yet started and the start 
Pursuant to Regulations section 301.6109-4, all filers of this   date may be accelerated.
form may truncate a participant's TIN (social security number 
(SSN), individual taxpayer identification number (ITIN),         Box 3. Total Premiums
adoption taxpayer identification number (ATIN), or employer      Enter the cumulative total amount of all premiums paid for the 
identification number (EIN)) on payee statements. Truncation     contract through the end of the calendar year.
is not allowed on any documents the filer files with the IRS. A 
filer's TIN may not be truncated on any form. See part M in      Box 4. FMV of QLAC
the 2019 General Instructions for Certain Information            Enter the fair market value (FMV) of the QLAC as of the close 
Returns.                                                         of the calendar year.
Manner and time for filing.  You must file Form 1098-Q with 
the IRS and furnish a statement to the individual in whose       Boxes 5a Through 5l
name the contract has been purchased for each calendar           Enter the amount of each premium paid for the contract and 
year beginning with the year in which the premiums for a         the date of the premium payment.

Instructions for Form 1098-Q (Rev. 03-2024)                                                                                      3