1099-R needed for death of participant?

[Cathy from Chicago]

Reviewed the 1099-R instruction book and it states if death benefits are paid that are not part of a pension/profit sharing plan, etc. a 1099-R is required. My situation includes a death benefit paid, from a life ins. policy, as proceeds from a DB plan. Is my thinking correct that a 1099-R is not required for the life ins. proceeds? New situation for me...thanks in advance.

[tymesup]

I'd expect the pension trust is the beneficiary of the policy; the insurance company pays the trust; the trust pays the participant's beneficiary. If so, the trust issues the 1099 and it didn't matter where the money came from.

Watch out for the plan definition of death benefit, the limits on the death benefit, the cash value of the policies and the PS 58's.

[AndyH]

Even if the trust is not the beneficiary, it still is a pension plan distribution requiring a 1099-R.