Annuities tax center
Find links to important tax information, useful forms and a list of our most frequently asked tax-related questions.
See how these tax processes can affect your contract:
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Required Minimum Distribution form
Use this form to make a one-time withdrawal or schedule recurring automatic withdrawals from an annuity contract to satisfy an RMD.
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IRS Form W-9 / IRS Form W-8BEN
Form W-9 can be used to certify a taxpayer identification number, as well as status as a U.S. tax person. An individual would use Form W-8BEN to certify status as a foreign tax person and to claim any available treaty benefits. A Form W-8BEN is generally good for only 3 years.
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State tax withholding forms
Get forms for the states of Arizona, Arkansas, Connecticut, Georgia, Michigan, and Virginia.
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Form 1099-R
Used for reporting reportable distributions from both qualified and non-qualified annuity contracts.
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Form 5498
Shows the contributions and/or rollover amounts paid into an IRA, as well as other relevant tax information.
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Other forms
Can’t find what you need? Check out our annuities forms page.
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Take a look at our most frequently asked questions:
How do the CARES Act and Secure Act impact my annuity contract?
Congress passed the CARES act, which provides emergency assistance and health care response for individuals, families, and business affected by the 2020 coronavirus pandemic. Among other provisions, the Act includes a temporary waiver of the requirement to take minimum distributions (RMDs) during 2020. The waiver applies to IRAs, section 403(b) contracts, section 403(a) plans, section 457 governmental deferred compensation plans, and defined contribution plans, including 401(k) plans.
Contact your tax professional for more information on how this Act impacts your contract.
How is annuity income taxed?
One of the benefits of an annuity is that earnings generally accrue on a tax-deferred basis.
Depending on the type of contract you own, a withdrawal, or certain other transactions, may subject you to tax on all or a portion of those earnings. Insurers are required to report certain transactions to the IRS on Form 1099-R.
Non-qualified annuity contracts:
- A withdrawal of earnings (but not principal) is tax reportable and taxable at ordinary income rates.
- If money is transferred directly to another insurance company as part of an exchange of contracts under Section 1035 of the Internal Revenure Code, the transaction is reportable even though it is not subject to tax.
Qualified annuity contracts:
- Withdrawals are generally tax reportable and taxable at ordinary income rates.
- Withdrawals transferred directly to other qualified annuity contracts or qualified plans may or may not result in a tax-reportable event.
Will I receive a tax form for a 1035 exchange?
You will receive a 1099-R if you complete a 1035 exchange to another insurance company. However, a 1035 exchange is not a taxable event. All such 1035 exchanges are reportable and the distribution code of '6' on the tax form indicates to the IRS that it was a tax-free 1035 exchange. If you received any distribution as part of the exchange, the distribution is taxable to the extent of gain accumulated in the exchanged contract and will be reported on a separate 1099-R.
What is the tax cost basis of my annuity contract?
The tax cost basis of your annuity is the amount categorized as the after-tax dollars in the contract. For annuity contracts issued after August 14, 1982, withdrawals are taken from earnings first and then tax cost basis. Withdrawals from tax cost basis are not reported as taxable on a 1099-R form.
Where can I find my contract's tax cost basis?
This information is not intended to serve as, and does not constitute, tax advice. Please contact your own tax professional with any questions about your personal tax situation.
John Hancock Annuities are issued by John Hancock Life Insurance Company (U.S.A.), Lansing, MI 48906, which is not licensed in New York. In New York, John Hancock Annuities are issued by John Hancock Life Insurance Company of New York, Valhalla, NY 10595. John Hancock Variable Annuities are distributed by John Hancock Distributors LLC.
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