Updated October 19, 2026. Quick answer: Box 3 of Form 1098-Q shows the cumulative total of premiums paid for the contract. The participant instructions attach a dollar limit to that total, and the IRS’s 2026 cost-of-living notice prints a different dollar figure for the same kind of limit. Both sentences are quoted below with the name and edition of each document, so you can see which one you are reading.
What box 3 reports
The instructions describe the box this way: “Shows the cumulative total amount of premiums paid for the contract.” The word cumulative matters. It is a running total across the life of the contract, not just the premiums paid in the reporting year. The year’s individual payments are in a different part of the form, described in Form 1098-Q box 4 and boxes 5a to 5l.
The first boxes on the form cover the annuity amount and start date and are explained in Form 1098-Q boxes 1a, 1b and 2. Box 3 is the one that connects the form to the premium limit.
Two documents, two dollar figures
The participant instructions on the form carry one limit sentence, and Notice 2025-67 carries another. They are set out here exactly as printed.
| Document and edition | Sentence about the premium limit |
|---|---|
| Form 1098-Q (Rev. April 2025), box 3 instructions | “Your cumulative total premiums paid for all QLACs cannot exceed $200,000.” |
| Notice 2025-67, titled 2026 Amounts Relating to Retirement Plans and IRAs | “The limitation on premiums paid for a qualifying longevity annuity contract” “remains $210,000.” |
The two documents print different dollar figures. They are different kinds of document: the form is the participant copy of an information return, and the notice is, by its own title, a list of 2026 amounts adjusted for changes in cost of living. This page quotes each document’s wording and does not decide between them. The the QLAC limit page keeps the limit in one place, and this page stays with what the two documents print.
What the form says to do if you paid more
The instructions follow the limit sentence immediately with a direction: “If you have paid more than that, contact your contract issuer.” That sentence refers to the figure printed on the form. If you are near either figure in the table above, the issuer shown on the front of the form is the party the instructions name, and the issuer can tell you what it recorded in box 3.
The idea behind the cap, and how a QLAC is used to reduce yearly withdrawals, is covered in using a QLAC to reduce RMDs, and the general rules for those withdrawals are in required minimum distributions.
Reading box 3 next to the other boxes
Box 3 is a total, while boxes 5a to 5l show the premium payments in the reporting year, so when you check your own records the box 3 figure should be compared with all the premiums you have paid since the contract began, not with one year’s payments. The contract’s current worth is in box 4, which the instructions call the fair market value as of December 31. Keep the form with your records: the participant copy is marked “(Keep for your records)”.
Edition and box numbers
This page reads Form 1098-Q (Rev. April 2025), the current file irs.gov served on 2026-10-19, and, for the 2026 dollar limit, Notice 2025-67. Check the year and edition printed on the form you received, because box numbers can change between editions.
Common mistakes
- Reading box 3 as this year’s premiums only. The instructions call it “the cumulative total amount of premiums paid for the contract.”
- Assuming the form’s printed limit and the notice’s 2026 limit are the same number. The form says “cannot exceed $200,000.” The notice says it “remains $210,000.”
- Ignoring the form’s own direction when your total looks high. The instructions say “If you have paid more than that, contact your contract issuer.”
Related: the QLAC limit page, using a QLAC to reduce RMDs, and required minimum distributions.
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Answer againSources
- Form 1098-Q, Qualifying Longevity Annuity Contract Information (Rev. April 2025), with Instructions for Participant: https://www.irs.gov/pub/irs-pdf/f1098q.pdf
- Notice 2025-67, 2026 Amounts Relating to Retirement Plans and IRAs: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- IRS: About Form 1098-Q: https://www.irs.gov/forms-pubs/about-form-1098-q
Read from the IRS documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.