Forms 1099-R and 1099-INT

What are they and why did I receive one?

Forms 1099 report various types of income you received throughout the year other than the salary an employer paid you. In January, Mutual Trust will mail 1099 Forms to policyholders receiving taxable income in 2015. These forms will not be accessible electronically via the website.

Forms 1099-R and 1099-INT

Mutual Trust produces 1099-R and 1099-INT forms that combine the taxable earnings for multiple policy numbers with the same payee social security number or tax ID number. Therefore, if you are a policyowner with multiple policies, you will receive only one 1099-R and/or one 1099-INT form, if applicable. The forms include all the policy numbers and detail the totals that will be reported to the IRS as having been earned under that social security number or tax ID number during 2015.

Form 1099-R is generally used to report distributions of $10 or more from pensions, annuities, profit sharing and retirement plans, IRA's and insurance contracts. Here are a few situations that may cause a Form 1099-R to be generated:

• Any surrender of a policy that has a gain.
• Lapse of a loaned policy that has a gain.
• A partial surrender under a policy that has a gain, including surrenders attributable to a reduction in face amount.
• Matured policies that have incurred a taxable gain.
  
• Any distribution, including loans, loan interest added, or dividends surrendered in cash from a Modified Endowment Contract that has a gain.
• A 1035 exchange from one insurer to another. Although a 1035 is generally not taxed, the IRS requires the original insurer to report the amounts transferred to the new insurance company.
• The death benefit paid to the beneficiary of an annuity contract.

Form 1099-INT is used to report interest credited on certain policy proceeds. Here are a few situations that can cause a Form 1099-INT to be generated.

• Interest earned on dividend accumulations.
• Interest earned on premiums paid in advance or deposit fund.
• Interest earned on insurance death claim proceeds from the date of death to the date of settlement.
• Interest earned on annuity death claim proceeds from the date of death to the date of settlement.
  
• Interest earned on maturities from the maturity date to the date of settlement.
• Interest earned on refund of premium to avoid a Modified Endowment Contract.

For more information, click here for a 1099 FAQ or contact our Customer Service Department at 800-323-7320, ext. 5060. For tax information, please consult your personal tax advisor.

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