Here's Why Form 5031 Is Important

March 2, 2020

After you’ve completed the form to help a client withdraw funds from an annuity contract, the last thing you want to hear is a request for more paperwork.

But every disbursement requires one more form – Form 5031. We need the form, also known as a substitute IRS Form W-4P and W-9, for two reasons.

Taxpayer Identification Number
Form 5031 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
Form 5031 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 when the IRS requires a Form 5031:

Surrender
Partial withdrawal
Scheduled payments
Annuitization
TSA loans
Transfer/rollover/exchange
Change of ownership
Change of state residence when receiving scheduled payments
Death claims

Have Questions?

We’ve made it easy for you and your clients by including Form 5031 with distribution request forms. If you have any questions about tax forms, please contact our Service Specialists at 800.247.6888 or send us a message.

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A Note from Greg Ness, Chairman, President and CEO

At The Standard, we’ve been helping people achieve financial well-being and peace of mind since 1906. As the global health crisis continues to disrupt lives, communities and the economy, I am confident we’ll continue helping people when they need us the most. Our company has been through hard times and market volatility before and we will navigate through this challenge as well. As our customers face tremendous stress and uncertainty, we will continue providing support and stability to those who rely on our products and services.

This pandemic is tough on everyone. Our communities are hurting, our families and friends are distressed and some of our most vulnerable neighbors are at risk.

The crisis and the way we collectively respond to it will define a generation. We are rising to the challenge. I know every single employee at our company — along with staying focused on keeping our business running and serving our customers — is looking for ways to make a difference for those most affected by this pandemic. That’s proving true in businesses and homes across the community, the country and around the world.

Part of the tragedy of this disease is that even as we come together to help those most in need, the unique nature of COVID-19 is forcing us apart. We all understand the importance of —social distancing— to slow the spread, but we should remember that’s just physical distancing. I encourage you to find ways to safely connect with those in your neighborhood who may require extra help and with groups in your community that are making a difference and support them however you can. And now is the perfect time to reach out to friends and others and just check in.

To our health care providers, first responders and everyone selflessly setting aside their own fears and concerns to help others during this time — thank you hardly seems enough. These people are true heroes. This crisis reinforces how reliant we are on the many essential services we too often take for granted. We are grateful to so many for continuing to show up with focus and commitment.

We will get through this, especially if we are sustained by the examples of those who make us the proudest right now — family, friends, neighbors and colleagues working together — rather than allowing our fears to guide us. No matter how unsettled we may feel, remember we are not alone. There are so many people in this world trying their level best to help others. And I am certain we will get through this — together.

In times of crisis, we are defined by how we react. Let’s continue to be defined by compassion.

And to our customers, thank you for putting your trust in The Standard. What we sell is a promise to be there when you need us, and that promise is unwavering.

Be safe and well, and stay connected.

Greg Ness

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Here's Why Form 5031 Is Important

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