Colorado Bankers (CB Life)...

[Tahoe Ray]

The rehabilitator for Colorado bankers life is allowing withdrawal of accumulated interest on annuities on a monthly basis…starting November 1 2022 … they have partnered with Kroll restructuring administration

You could normally do partial 1035 exchanges to a new annuity (assuming non qualified assets) but not in this case since there probably isn't anyone to administer it.

 

[David Nyman]

Is there any way to deduct lost income from this below market interest rate we are receiving?

 

[David Nyman]

As long as the insurance companies can keep our money at below market rates and not have to payout to the state guarantee funds there is an incentive to not have this settled. I really think that the NCID does not have our interests as a priority. Why else would they allow insurance companies to deny legitimate cLaims.

 

[DHK]

Is there any way to deduct lost income from this below market interest rate we are receiving?

Insurance contracts are not subject to capital gains taxes nor capital loss deductions.

A lower interest rate received is not a capital loss according to the tax code.

 

[Allen Trent]

Is there any way to deduct lost income from this below market interest rate we are receiving?

no. you cant deduct money you didnt lose. So, getting 1% instead of say 2.5% still is net positive compared to zero. no different than some banks paying .5% on CD renewals even if they are paying 4% on new CDs

Plus, it isnt below market. the assets purchased when you bought the annuity were invested in low interest bonds & mortgages. Had CBL not gone under, your annuity likely still would be renewing at relatively low rates compared to current new money rates.

 

[David Nyman]

So your saying that if I bought an annuity today it would not pay more than 1%. Do you realize how you sound?

 

[DayTimer]

So your saying that if I bought an annuity today it would not pay more than 1%. Do you realize how you sound?

He isn't saying that at all. Read his post again.

 

[Stephen Round]

Here's today's article in the Wall Street Journal.
[EXTERNAL LINK] - Thousands of Retirees Can’t Withdraw Savings Invested in Firms Controlled by Indicted Financier Greg Lindberg

 

[Dan T]

Kudos for getting the story out there!!

 

[Stephen Round]

That's because you cannot pledge an IRA as collateral for a loan or it becomes fully taxable in that year. You might be able to with a non-qualified annuity? I can't recall that.

So this is an unsecured loan on their end.

And as long as they didn't have foreknowledge of what was happening, it's not their fault.

Yes, it sucks, but at least they're trying something.

And don't tell me they're "making money" at 2.99% in this interest rate environment.

My annuity was not an IRA. And, if the advisors at Citizens Bank were truly doing their due-diligence for their many customers with millions of $$$$ invested through them, they should have seen this coming and told us all to "pull out" before CBL went into receivership.