1099-R box 7, code 9

[JoshinNC]

client came in today with a 1099-R that had code 9 in box 7. I looked this code up and it is for insurance premiums. This client is participating in his company's 401(k), but knows of no "insurance" policy (i.e. deferred comp). Can someone shed some light on why this would be reported on 1099-R and not on W-2, box 12, code C?

Thanks in advance!

[OldJack]

Instructions say code 9 - Cost of current life insurance protection (premiums paid by a trustee or custodian for current insurance protection, taxable to you currently).

It would appear that someone, probably besides the employer, has paid life insurance as a taxable benefit to the person.

[Unregistered]

that was my 1st thought

but the employer is listed as the payer.

i really don't know why a 1099-R would be used for this. i'm going to do some more research before the client comes back in next week. if anyone has seen this before please provide input.

JoshInNC

[BP.]

Josh, I did see one exactly like this earlier in the year. It was a regular client, and he's been with the same ER for years, but this was the first time he got a doc like this. I sent him with a note to see why it was not treated as you suggested, W-2, box 12, C. Client decided dealing with his HR was too much of a hassle for the small amount so we treated as reported. Never did find the reason for the 1099R, sorry.

[Unregistered]

Code 9

See TTB 16-16 Code 9 Cost of current life insurance protection (premiums paid by a trustee or custodian for current insurance protection. taxable to you currently