Friendly Reminder About Form 5031

April 3, 2023

Here’s a helpful reminder while you help a client withdraw funds from an annuity contract. Every disbursement request requires one more form – The Standard’s Form 5031 Substitute IRS Forms W-4P and W-9. There are two reasons we require this form.

Taxpayer Identification Number

This form provides a verified taxpayer identification number. We require a TIN for any disbursement of funds, as well as for other actions. If we don't have a verified TIN, the IRS may require us to do backup withholding on the disbursement.

Tax Withholding Information

The form also provides tax-withholding information. If your client doesn’t want taxes withheld from the disbursement, it’s essential that you submit Form 5031 with the distribution request.

Here are situations that require Form 5031 Substitute IRS Forms W-4P and W-9:

  • Free look cancellations
  • Surrender
  • Partial withdrawals
  • Scheduled payments
  • Annuitization
  • TSA loans
  • Transfer/rollover/exchange, including internal transfers
  • Change of ownership
  • Change of state residence when receiving scheduled payments
  • Death claims

For your convenience, we include Form 5031 with distribution request forms.

Have Questions?

If you have any questions about tax forms, contact our service specialists at 800.247.6888 or send us a message.

 

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