annuity purchased and Form 1099R

[Dinosaur]

A DB plan terminated and all participants were paid out in 2015. One participant chose the joint and 100% survivor annuity option and an annuity contract was purchased (from an insurance company). My questions are as follows:

1) Is the purchase amount of the annuity included in #7d (benefits paid) of the SF? I assume yes since where else would you put it.

2) Is a Form 1099-R prepared for this participant? I assume no since the insurance company received the benefit and not the participant.

[david rigby]

1. Line 8d. Yes.

2. Assuming you mean the plan purchased a paid-up annuity (and this annuity contract provides 100% of the benefits payable), the plan does not produce any 1099R. The insurance company pays all participant benefits, and must provide the 1099.

[Dinosaur]

David

The plan paid the cost of the annuity to the insurance company for 100% of the participants' benefit in the plan. So, I guess it makes sense that the insurance company will provide the 1099R as the participant receives his benefit.

[david rigby]

Yes, and there is no need to inform the participant (via 1099) how much the plan paid for the annuity contract.