The Standard is a marketing name for Standard Insurance Company (Portland, Oregon), licensed in all states except New York. Products and availability vary by state and are solely the responsibility of Standard Insurance Company.
Why Are Substitute IRS Forms W-4P and W-9 Necessary?
Have you been caught here? You work with a client to complete a distribution form in order to withdraw funds from their annuity contract. You submit the form and request a rush in processing. Soon after, you receive a phone call from The Standard requesting a Substitute IRS Form W-4P and W-9 (Form 5031) prior to disbursement. The result is frustration for both you and your client. Why is this mystery form required for all disbursements from an annuity policy?
The Standard requires a verified taxpayer identification number (TIN) for any disbursement of funds, as well as for various other actions. Form 5031 provides this verification. In situations where we don't have a verified TIN, the IRS may require us to do backup withholding on the disbursement. We require Form 5031 when the TIN on the request hasn't been verified by an IRS form W-9 or by a Form 5031 submitted with a previous distribution request. Once the taxpayer's TIN is verified, this part of the form isn’t required again.
The second use of this form is to provide tax withholding information. When The Standard receives a disbursement request where the TIN has already been verified and no Form 5031 is included or on file, the default is to withhold Federal taxes and any applicable state taxes. If your client doesn’t want taxes withheld from their disbursement, it’s essential that you submit Form 5031 with the distribution request.
The list below highlights situations where the IRS requires a Form 5031:
- Partial Withdrawal
- Scheduled Payments
- TSA Loans
- Change of Ownership
- Change of State Residence when receiving scheduled payments
- Death Claims
For your convenience, The Standard bundles 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.
Jared's Story: Time for Family
Age: 36 - Occupation: pediatrician - Married, one child
How the Family Care Benefit provided the ability to care for a loved one
Jared's daughter was born with a heart defect. They visited multiple specialists to diagnose the condition and determine the appropriate treatment. Then his daughter underwent surgeries, hospital stays and months of follow-up appointments. Benefits from Jared’s Platinum Advantage policy helped make up for the income lost when Jared spent time away from work to attend physician appointments and to be with his daughter in the hospital and throughout her extended recovery — providing peace of mind during a trying time.
Supportive Office Equipment
Age: 42 - Occupation: accountant - Married, no children
Assistance on the road to recovery through a rehabilitation program
Jody's role as an accountant at a small firm requires a lot of computer work. After sustaining a serious back injury from a car accident, Jody was totally disabled under her Platinum Advantage policy. Jody’s doctor recommended she purchase assistive equipment to help her work comfortably at her desk without aggravating her condition. She was able to return to work full time after participating in a rehabilitation program in which expenses for a sitstand desk and other ergonomic accommodations were paid for under her Platinum Advantage policy. These modifications helped ensure she could return to work safely, without hindering her recovery.
David's Story: Starting a Medical Career
Age: 33 - Occupation: dermatology physician - Single, no children
Benefits that match career growth through the Benefit Increase Rider
David is completing his dermatology residency and just accepted an offer at a private practice. Before the end of his residency, he purchased a Platinum Advantage policy that included the Benefit Increase Rider, knowing his income will rise significantly after he starts his first post-residency job. The benefit also will allow his policy to grow with him as he progresses in his career and receives additional salary increases. David values the fact that his coverage going forward will match his developing career.
Jason's Story: Accidents Happen
Age: 35 • Occupation: orthopedic surgeon • Married, two children
Finding work in a new occupation with the Own Occupation Rider
Jason injured his right hand in an accident and was unable to return to his job as an orthopedic surgeon because he couldn't perform surgery. Due to his medical training, he was able to return to work as a family medicine physician. Jason was considered totally disabled in his regular occupation as an orthopedic surgeon — even though he earns an income from another occupation as a family medicine physician — because of the own occupation definition of total disability included in his Platinum Advantage policy. Because of this, he receives the policy's full basic monthly benefit, in addition to the income he receives in his new position.