Any update on the Bankers Life Rehab?

[rats0001]

Anybody get the new letter yet?

 

[rats0001]

I GOT IT. Monthly interest payment from cblife. Treating it like life annuity, since it will take the rest of my life to get back principle.

 

[caryl baff]

Sadly, the inmates are running the asylum! All we can hope for now are small interest payments. We have all been had.

 

[ccwpc]

I GOT IT. Monthly interest payment from cblife. Treating it like life annuity, since it will take the rest of my life to get back principle.

I got the letter too. It just says monthly payments. Do you know for how many months? And what are the tax implications? Is it going to be taxed just like regular income?

 

[Allen Trent]

I got the letter too. It just says monthly payments. Do you know for how many months? And what are the tax implications? Is it going to be taxed just like regular income?

Depends on what type of Annuity you have. If it is Traditional IRA type, all distributions are taxed at ordinary income tax rates to you when you take money out or when you die. If it is a Roth IRA that you have held for 5 years or more & over age 59 1/2, the tax notice will show $0 as taxable when you take money or at death. If it is a non-qualified annuity, you will have receive all your earned interest out as ordinary taxable income before you can receive any of the original cost basis investment as tax free distribution & that is also how it works at death where all deferred gains must be reported as taxable before tax free cost basis

 

[caryl baff]

I WOULD THINK IT WOULD BUT CHECK WITH ACCOUNTANT MINE DIDNT SAY ANYTHING AS I DIDNT ASK, JUST GLAD TO GET THE CRUMBS FROM MY STOLEN ANNUITY.

 

[caryl baff]

ALSO, DID ANYONE SEE THE DOJ VICTIMS UNIT IS REACHING OUT. PATHETIC NO MONEY ONLY EMPTY WORDS.

 

[ccwpc]

Depends on what type of Annuity you have. If it is Traditional IRA type, all distributions are taxed at ordinary income tax rates to you when you take money out or when you die. If it is a Roth IRA that you have held for 5 years or more & over age 59 1/2, the tax notice will show $0 as taxable when you take money or at death. If it is a non-qualified annuity, you will have receive all your earned interest out as ordinary taxable income before you can receive any of the original cost basis investment as tax free distribution & that is also how it works at death where all deferred gains must be reported as taxable before tax free cost basis

Thank you for the reply. Another question. If I do opt to take these monthly interest payments, does that affect or nullify or give up any rights to the state guarantee payment?

 

[AnnuityGuy63]

My client received the letter says he will get $8803.91 but the NCRehab website says he gets $721.00.... how is that... these numbers don't come close to each other.

 

[Allen Trent]

Thank you for the reply. Another question. If I do opt to take these monthly interest payments, does that affect or nullify or give up any rights to the state guarantee payment?

I would assume it counts toward your maximum state limit. So, let's say you have $300k in account & 1% monthly checks are $250 per month. If those are paid for 2 years & your state guaranty is max of $250k, you would likely get $245k at payout from fund because you had already taken out $5k in interest payments.

I can't imagine you get maximum plus your prior distributions as some individuals may have been taking large sums out in past before the crisis & would benefit more than others that hadn't taken anything out.

This would be a good question for the Guaranty Association in your state.

Most of us on here have no direct experience with such matters as insurance carrier failures (especially fraud like this) are extremely rare & most of us have never sold a policy from a carrier that ended up in liquidation