What to Give Your CPA for Annuities & Basis Tracking

If you recently used annuity withdrawals, partial 1035 exchanges, or annuity proceeds to fund a Roth conversion, your CPA will want a clear, organized packet of records. Good organization speeds review, reduces back‑and‑forth, and lowers the chance of amended returns. This guide explains what to collect, how to present it, and common pitfalls to flag for your tax preparer.

Key documents every CPA will ask for

Provide the original insurer statements and any tax reporting forms you received for the year. These help your CPA match what the insurer reported to the IRS with your tax return. Important items include:

• All 1099‑R forms for the year(s) showing distributions, with any distribution codes and taxable amounts
• Statements showing the annuity contract’s cost basis (after‑tax premiums) and a history of prior withdrawals or income payments
• 1035 exchange paperwork and replacement disclosures if you moved contract value between annuities
• Policy contract pages or contract summaries that state surrender schedules, penalty periods, and rider elections
• Year‑end contract statements and any insurer correspondence about corrected or amended reporting

What to summarize before you hand documents over

CPAs appreciate a short, plain‑English cover sheet that explains the transactions and flags anything unusual. Keep it to one page and include:

• A one‑line description of each annuity transaction (e.g., partial withdrawal on mm/dd for Roth conversion; 1035 exchange on mm/dd)
• The dollar amount involved and where funds went (bank account, Roth IRA, new annuity contract)
• Whether any amounts were reported as ‘non‑taxable return of basis’ on forms you received
• Contact info for the insurer and the agent/advisor who handled the transaction

How to help your CPA determine taxable vs. non‑taxable portions

Tax treatment depends on contract basis, prior distributions, and whether a 1035 exchange or replacement occurred. Your CPA will reconcile insurer reporting with your basis records. Helpful items include a running basis ledger showing premiums paid, dates, and any prior taxable distributions, plus receipts for after‑tax premiums. If you don’t have a ledger, a clear list of premiums by year and copies of original purchase statements can often substitute.

Common reporting complications to flag

Calling out potential trouble spots up front saves time. Note these for your CPA if they apply:

• Partial cashouts combined with a 1035 exchange in the same year
• Surrender charges or market value adjustments applied to a distribution
• Corrected or duplicate 1099‑R forms received from the insurer
• Roth conversions funded directly from an annuity versus routing through a bank/IRA account

Practical delivery and communication tips

Send a single packet — either a searchable PDF or a clearly labeled paper folder — rather than scattered emails. Use document names that match your cover sheet (e.g., “1099‑R_ABC_Annuity_2025.pdf”). Offer to provide insurer contact information or a signed permission form if your CPA needs to get records directly from the company. Finally, ask your CPA what format they prefer and whether they want source files or just summaries.

When to loop in your annuity advisor

If records are incomplete, the insurer’s reporting is unclear, or you see an unexpected 1099‑R code, your advisor can often request transaction histories or carrier explanations. Tim Hartle at PGW Financial Wealth Advisors (Tampa Bay) has experience assembling audit‑ready annuity files and can help coordinate the documents between you and your CPA to reduce delays and questions.

If you’d like a free, no‑pressure annuity and document review before you meet your CPA, call Tim Hartle at (727) 692-5866. He serves Pinellas, Pasco, and Hillsborough counties and can help gather the contract-level paperwork that CPAs typically need.

This article is for general educational purposes only and is not financial, tax, or legal advice. Rules and product features vary by situation and by state. Please consult a qualified advisor about your own circumstances. Any annuity guarantees discussed here are subject to the financial strength and claims-paying ability of the issuing insurance company. Annuities are not FDIC insured and are not bank guaranteed.