A beneficiary is being paid the proceeds of a life insurance policy that was held in the spouse's qualified plan. The taxable amount on the 1099R will be different that the amount of the total distribution since only the cash surrender amount is taxable. I'm wondering if there needs to be an explanation about why the 2 amounts are different, such as a code indicating a distribution of life insurance proceeds. I'm not seeing anything in the 1099R instructions that mentions a code for life insurance.