Hartford Life Insurance 1099‑R 2016: What You Need to Know

Understanding the 1099‑R from Hartford Life Insurance

The 1099‑R is the IRS form used to report distributions from retirement accounts and certain life insurance policies. If you received a 1099‑R from Hartford Life Insurance in 2016, it indicates that a distribution—such as a policy loan repayment, a cash surrender, or a policy dividend—was made during that year. The form details the amount distributed, the tax treatment, and whether any taxes were withheld.

Key Boxes on the 1099‑R

Box 1 shows the total distribution amount. Box 2 reports the taxable portion, which could be zero if the distribution is a non‑taxable return of premiums. Box 3 indicates the type of distribution, such as "normal distribution" or "early distribution." Box 4 shows federal income tax withheld, if any. Box 5 contains the recipient's taxpayer identification number.

Tax Implications for 2016

Distributions that are considered taxable are added to your ordinary income for 2016. If the distribution is a return of premiums, it is not taxable. Early distributions (before age 59½) may be subject to a 10% penalty unless an exemption applies. The 1099‑R also helps determine if you must file Form 5329 for additional tax on early withdrawals.

What to Check Before Filing 2016 Taxes

• Verify the distribution amount matches your records.
• Confirm the taxable amount matches the portion of premiums you paid versus the payout.
• Check for any tax withheld; if none was withheld and the amount is taxable, you may owe additional tax.
• If the distribution was early, review the reason for exemption—such as disability, medical expenses, or a qualified first‑home purchase.

How to Correct Errors

If the 1099‑R contains mistakes, contact Hartford's customer service with your policy number and the correct details. They can issue a corrected form (Form 1099‑R, corrected) before the 2016 tax deadline. For errors that cannot be corrected, you may need to file an amended return (Form 1040X) once the correct information is available.

Storing Records and Future Planning

Keep the 1099‑R and related policy documents for at least seven years, as the IRS may request them. For future years, track policy loans and dividends carefully; they trigger new 1099‑Rs. If you plan to take a distribution, review Hartford's policy terms to understand the tax impact and potential penalties.