1099 R life insurances

Forum|Forum|11 months ago
April 14, 2025
1 reply
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received notification that Life insurance was going to unclaimed funds. Was able to avoid that receiving the funds. Life insurance company mailed 1099-R form reporting gross distribution (Box 1) and taxable amount (box 2a) the same amount. example amount $100,000 would be add to current income taxable $100,000 + yearly income....

Inquire to taxability of beneficiary of life insurance general answer no taxed,,,,,

From the 1099-R life insurance 100% is taxable.

Is this correct?

If so tax payment is do when filing Taxes 2024...

Thank you for any advice

Not A Product Question

AmyC

Life insurance as a beneficiary of a claim, would not be taxed. If this was your life insurance that you have been paying into and you had built up an excess over premiums paid, it is taxable.

See Life insurance & disability insurance proceeds - IRS.

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OverTheHill1999Author

Thank you AmyC, when you state taxable would that be only the excess amount or total amount received? The 1099-R form shows total amount as taxable. I'm confused about life insurance is not taxed. I follow if life insurance policy is not cashed at time of death and accurse interest. The interest acquired from date of death is taxable but not the total sum. The way the 1099-R is reporting total amount would be added to annual income and be taxed..... Then life insurance 100% taxed????? I'm sure that I'm missing something here....