Retirement tax questions

If you've cashed in your life insurance policy, then it's taxable to the extent that your earnings exceed your contributions.

You figure it like this: 

Proceeds from cashed-in Life Insurance policy minus amount paid for the policy minus additional premiums paid by you.  

You'll receive a 1099-INT or 1099-R from the insurance carrier, and depending on what it's reported on, it either goes on the interest line or the retirement income line.  

Here's further information on Taxable and Nontaxable Income.  

 

 

 


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