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Retirement tax questions
Life insurance proceeds paid to the *named* beneficiary of a life insurance policy upon the passing of the insured is not taxable or reportable on any tax return.
HOWEVER - any earnings that may have accumulated on the payout after the passing of the insured are taxable income to that beneficiary recipient. So you can expect to receive a 1099-R at tax time for what will be a very small amount of reportable income. (small amount, in comparison to the total payout amount.)
‎June 5, 2019
11:27 PM