The IRS recently updated the Instructions for Form 1098-Q. The updated instructions include a note to use them with the December 2019 revision of the form. There have been several significant updates.
First, the dollar limitation on premiums increased to $200,000 and is no longer limited to 25% of the individual’s retirement account balance. The dollar amount will be adjusted each year for inflation. Second, the instructions now include divorce guidelines. If certain requirements are met, a divorce that occurs after the purchase of a qualifying longevity annuity contract (QLAC) with joint and survivor annuity benefits will not affect the permissibility of the benefits payable under the contract. Third, it is permissible for QLACs to include a 90 day right to rescind.
The Instructions for Form 1098-Q can be found here.
