Reporting Life Insurance Contracts

[Guest Jimmy B]

How are life insurance contracts reported on Schedule A? Should the face value of the contract be reported on Line 3 or should the surrender value be reported? Am I completely off base?

Thanks

[Kirk Maldonado]

Do the instructions provide any guidance?

[Kristina]

Per the Form 5500 instructions, when there is life insurance in the qualifed retirement plan Item 8b is marked as well as 8a. Therefore, carrying forward that logic to the Schedule A, one would mark #7d and put the premium amount in line 9. This is a change since the DOL took over the 5500's and is not in line with what 5500 preparers have done in the past, but it has been confirmed with the DOL that this is what they expect to see when there is life insurance in a qualified retirement plan.