Tax Statement Frequently Asked Questions
General Tax Correspondence
Allianz Life Insurance Company of New York (Allianz Life of NY), its affiliated companies, and their representatives and employees do not provide legal or tax advice. We encourage you to consult your tax and/or legal advisor with any tax or legal related questions.
We will mail Forms 1099-R and 5498 by February 1, 2021. Please allow 5-7 business days to receive your statement(s) by mail. After February 1, you can check to see if your statements are also available online by registering or logging in to your account and going to “Current Statements.” Please note that online statements are not available for some clients. Allianz does not issue any tax reporting on custodial IRAs or qualified plans such as pension plans, Keoghs, 401(k) plans, or defined benefit plans.
We will mail Form 1099-R by February 1, 2021. After February 1, you can check to see if your statement is also available online by registering or logging in to your account and going to “Current Statements.” Please note that online statements are not available for some clients.
We will mail Form 5498 by February 1, 2021. After February 1, you can check to see if your statement is also available online by registering or logging in to your account and going to “Current Statements.” Please note that online statements are not available for some clients.
A 1099-R is used to report transactions that occur between January 1 and December 31 of the previous tax year from financial products such as life insurance or annuities. These transactions typically include, but are not limited to:
- Distributions (e.g., required minimum distributions, loans from nonqualified annuities, full or partial surrenders, annuitization payments, and annuity claim proceeds).
- Collateral assignments or taxable ownership changes on nonqualified annuities.
For a nonqualified annuity, Allianz Life of NY did not receive the after-tax contribution (cost basis) information from the previous company. Please consult a tax advisor to determine this amount.
This box is also generally checked for a distribution from an IRA (Traditional, SEP, SIMPLE or Roth). If you have made any nondeductible contributions to an IRA, you should consult your tax advisor to determine how much of the IRA distribution should be reported as taxable income. The IRS instructions require reporting in this manner.
If you received distributions from multiple contracts, you will get a 1099-R for each contract. Please refer to the account number box on the 1099-R.
The IRS requires the use of specific distribution codes for different types of payments, which need to be reported separately. See your Form 1099-R instructions regarding Box 7 for IRS distribution code information.
If you had a taxable distribution in more than one resident state, a separate 1099-R would generate for each state.
If Allianz Life of NY did not receive transfer paperwork and a letter of acceptance from the other company, even if the check was made payable to the other company, we report the transaction because we do not have confirmation that the distribution went directly to an IRA at another company. If you perform an eligible 60-day rollover (indirect rollover), the 5498 from the receiving company should report the receipt of the indirect rollover. You should consult a tax advisor for information on the proper income tax reporting of a rollover from an IRA.
Reminder: If you complete a tax-free IRA-to-IRA indirect rollover, you generally cannot, within a one-year period from the date you received the distribution, make another tax-free rollover of a distribution from any of your IRAs to another IRA.
A loan from a nonqualified annuity is considered a taxable event (if there were gains in the contract up to the amount of the loan), even if it was paid back in the same year. Your cost basis has been increased to the extent of any gain reported as taxable, so you will not be taxed on this amount twice.
If you defaulted on loan payments for a 403(b), the remaining loan balance is reported as taxable; however, the loan is still outstanding.
The total distribution amount will be reported in Box 1, the taxable portion of the distribution will be reported in Box 2a, and the amount of after-tax contribution (cost basis) will be reported in Box 5.
A 1035 exchange is reportable, but not taxable. The 1099-R is the supporting document to show the amount of gains and the cost basis amount that were sent to the other company. Box 2a will be blank, to show that this is nontaxable.
Form 5498 is used for reporting IRA contribution information, such as contributions and rollovers to Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. Form 5498 is also used to report the year-end Fair Market Value information for your annuity. This form is for your records only and does not need to be attached to your submitted income tax return.
Money that was sent directly from one IRA into another IRA is considered a transfer. A transfer is not reported on a 5498 Form. The transfer amount is added into your Fair Market Value in Box 5. Since a transfer is also not reported on an IRS Form 1099-R, you should not receive a 1099-R from the previous company for a transfer.
An IRA-to-IRA indirect rollover occurs when money is taken from one IRA and redeposited into another IRA within 60 days of receipt of the funds. You should receive a Form 1099-R from the distributing company. If any portion of this distribution is not redeposited within 60 days, this portion will be considered taxable and no longer qualifies as a rollover contribution. Allianz Life of NY reports the amount that it receives via this rollover in Box 2. Generally, if you deposited the check to Allianz Life of NY within 60 days of the day you received the money, this indirect rollover will be reported on Form 5498.
Note: If you make a tax-free IRA-to-IRA rollover, you cannot, within a 12-month period, make another tax-free rollover of a distribution from any of your IRAs to another IRA. There was a temporary exception to this rule in 2020 if certain requirements were met.
Any employer contributions will show as SEP IRA contributions. Employer contributions to a SEP IRA will be reported in Box 8. Any Traditional/Personal contributions you make directly to the SEP IRA will be reported in Box 1. Employer contributions are required to be reported on the form for the year the contributions are received. Personal contributions are reported on the form for the year for which the contributions were made.
The general limit – the most that can be contributed to your Traditional IRA and/or Roth IRA – is the lesser of the following amounts: $6,000.00 ($7,000.00 if you are age 50 or older) or your taxable compensation for the year. Please consult a tax advisor on specifics regarding contributions for Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
If your Traditional or Roth IRA contract allows for additional premium, your contribution must be sent to a company-approved mailing address and postmarked by the due date of April 15. If you have more than one Allianz Life of NY contract, please verify that you have specified the correct contract. Note that Allianz Life of NY does not accept starter checks. If you would like your contribution to be recorded for the 2020 tax year, please put “2020 contribution” on your check sent to our office. If “2020 contribution” is not on your check, we will apply the money as a 2021 contribution. If you are making a Traditional IRA contribution for 2020 between January 1 and the due date, it will be shown on Form 5498, which will be sent to you by May 31, 2021.
SEP IRA contributions the IRA issuer receives in 2021 will be reported on the 2021 Form 5498, even when the employer deducts the SEP contribution on their 2020 tax return. Please consult a tax advisor for the best way to administer this extension.
An RMD Election Form will be included with your tax statement mailing(s). You can also request online by logging in to your account.