U.S. · Tax forms
1099-R distribution code W.
Paying for long-term care cover from inside an annuity or life policy.
Code W reports charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements, taken against the cash value of an annuity or the cash surrender value of a life insurance contract and excludable under section 72(e)(11). The charge is included in box 1 and a nontaxable charge gets -0- in box 2a. Table 1 lists 6 as the code that may go with W.
Check a pair of codes
Result
What the IRS says code W is
Table 1 says: "Use code W for charges or payments for purchasing qualified long-term care insurance contracts under combined arrangements that are excludable under section 72(e)(11) against the cash value of an annuity contract or the cash surrender value of a life insurance contract." The used-with column lists 6.
The box 1 instructions say to include the charges or payments in box 1 and enter code W in box 7a. Under box 2a, -0- is entered for a nontaxable charge or payment of this kind. The box 8a instructions also direct the payer to enter the amount of the reduction in the investment, not below -0-, against the cash value of the annuity or the cash surrender value of the life insurance contract.
How it affects Form 1040
A code W form with -0- in box 2a shows no taxable amount from that charge. The 2025 Form 1040 instructions for lines 5a and 5b describe pensions and annuities in general and do not name code W, so this page does not state a specific line entry.
If your form shows a taxable amount in box 2a, read it as the payer's figure, and ask the payer or a preparer before changing it.
Common mistakes
- Treating box 1 as income. For a nontaxable charge, box 2a is -0-.
- Overlooking box 8a, which shows the reduction in the contract investment tied to the charge.
- Mixing it up with code 6. Code 6 is the exchange itself; Table 1 lists the two as usable together.
- Assuming any long-term care premium qualifies. The code is for charges against a contract's cash value under a combined arrangement.
Worked example
Illustration, not a real case. An insurer takes $1,800 in the year from an annuity's cash value to pay for a qualified long-term care rider. Form 1099-R shows $1,800 in box 1, -0- in box 2a and code W in box 7a, and box 8a reflects the reduction in the contract investment.
Related codes
Code W sits beside 6, 9, F. The full 1099-R distribution codes lookup lets you search every code; the other pages in this set are 6, 9, E, F, K, S, U.
Sources
Retrieved November 2, 2026. Review status: needed before this page is treated as final.
- IRS, Instructions for Forms 1099-R and 5498 (2026): Table 1, Guide to Distribution Codes, plus the box 1, 2a and 7a text.
- IRS, Instructions for Form 1040 (2025): lines 4a and 4b (IRA distributions) and 5a and 5b (pensions and annuities).
Form 1099-R changes for 2026: box 7 becomes box 7a. On forms for earlier years the code is in box 7. The Form 1040 instructions read are for tax year 2025.
Frequently asked questions
Do I owe tax on a code W amount?
The payer instructions have the payer enter -0- in box 2a for a nontaxable charge or payment of this kind. Check box 2a on your form.
What is a combined arrangement?
The code refers to qualified long-term care insurance combined with an annuity contract or a life insurance contract, with charges paid from the cash value or cash surrender value.
Can code W be combined with another code?
Table 1 lists 6 as the code that may be used with W.
What does box 8a show for code W?
The payer instructions direct the payer to enter the reduction in the investment against the contract, but not below -0-, in box 8a.
Not tax advice
This page summarizes IRS instructions written for payers and is not tax advice. The payer, a CPA or an enrolled agent can confirm what a code means for your situation. Everything runs in your browser; nothing you enter is sent anywhere.