dmertz - I do not agree with your statement about it being the purchase of a QLAC but rather think it is an error on the part of Lincoln National Life Insurance issuing a 1099-R. We have had two LTC policies for twenty-three years now purchased from an insurance company and have never received a 1099-R. My friend just purchased the policy outright through LNLI. I read the instructions for issuing of a Form 1099-R online at the IRS site and no actions he took (i.e., direct purchase) call for this issuance of a 1099-R.
I do agree with you that it is a non-taxable event as long as box 2a has a zero dollar amount entered in it. He did place $0 in box 2a using TT and it did not make it taxable.
