Colorado Bankers (CB Life)...

[ccwpc]

So regarding the 25 percent of policy value distribution, according to the letter, the entire 25 percent is going to be taxed. What is this 25 percent considered as? Part of our principal? Part of interest earned? If it's part of our principle, doesn't that mean we're paying taxes on money that is essentially ours to begin with? If so, how is that right??

And second question. Which is the better option? Have the tax withheld or not? Thanks in advance.

 

[Allen Trent]

So regarding the 25 percent of policy value distribution, according to the letter, the entire 25 percent is going to be taxed. What is this 25 percent considered as? Part of our principal? Part of interest earned? If it's part of our principle, doesn't that mean we're paying taxes on money that is essentially ours to begin with? If so, how is that right??

And second question. Which is the better option? Have the tax withheld or not? Thanks in advance.

I doubt the letter says all 25% will be taxed as there is no way for an insurance carrier to blatantly say all accounts will be taxed because every account is different. The newest ones likely dont have 25% in interest gains. Others may have no gains if they had rolled over a variable Annuity that had losses from market losses. Others are Roth IRA & person may be over 59 & have none taxed. Some are traditional IRA & all will be reported as taxable (may or may not owe taxes depending on total income etc)

 

[ccwpc]

I doubt the letter says all 25% will be taxed as there is no way for an insurance carrier to blatantly say all accounts will be taxed because every account is different. The newest ones likely dont have 25% in interest gains. Others may have no gains if they had rolled over a variable Annuity that had losses from market losses. Others are Roth IRA & person may be over 59 & have none taxed. Some are traditional IRA & all will be reported as taxable (may or may not owe taxes depending on total income etc)

On the subject of taxes, the letter just says that there will be a default witholding of 10% from the distribution for Federal Income Taxes and the option to have taxes witheld or not.

They provided an email to write to for any questions so i did:

Hello. Regarding the 25 percent of policy value distribution, is entire 25 percent is going to be taxed? What is this 25 percent considered as? Part of our principal? Part of interest earned? And how do you make the determination? If it's part of our principal, we would essentially be paying tax on money we already own. So what is this 25% considered as? Where do you draw the line between principal and interest earned?

Their response was not helpful. It was just about word for word from the letter that was sent:

Thank you for your inquiry.

The Rehabilitator has determined, in working with its accountants and advisers, that CB Life now has sufficient liquidity to provide a 25% partial withdrawal of annuity funds, less applicable tax withholding, fees and surrender charges, as an exception to the moratorium.

Any elections made in connection to the Partial Withdrawal Program must be made by October 31, 2023.

The letter indicates what you are entitled to receive this in addition to your election options. Please review the letter in its entirety.

You may visit www.NCRehabWithdrawal.com to make an election.

Unless you elect otherwise, Federal income taxes may be withheld on their withdrawal at a rate of 10% along with any required state tax withholding. The applicable default withholding may be higher for Individual Retirement Accounts (IRAs) under certain circumstances. If you wish to change the withholding for Federal income taxes, then you must make that election by October 31, 2023 on the Partial Withdrawal Portal.

You may also monitor www.bankerslifeinsurance.com and www.cblife.com for updates on the rehabilitation.

PLEASE NOTE: Kroll is the administrator for the partial withdrawal program for Colorado Bankers Life Insurance Company. As such, Kroll is not permitted to provide legal or financial advice.

Regards,
_________________________________________

Kroll Inquiries

Seems like a bunch of clowns running a clown show there.

 

[Allen Trent]

On the subject of taxes, the letter just says that there will be a default witholding of 10% from the distribution for Federal Income Taxes and the option to have taxes witheld or not.

They provided an email to write to for any questions so i did:

Hello. Regarding the 25 percent of policy value distribution, is entire 25 percent is going to be taxed? What is this 25 percent considered as? Part of our principal? Part of interest earned? And how do you make the determination? If it's part of our principal, we would essentially be paying tax on money we already own. So what is this 25% considered as? Where do you draw the line between principal and interest earned?

Their response was not helpful. It was just about word for word from the letter that was sent:

Thank you for your inquiry.

The Rehabilitator has determined, in working with its accountants and advisers, that CB Life now has sufficient liquidity to provide a 25% partial withdrawal of annuity funds, less applicable tax withholding, fees and surrender charges, as an exception to the moratorium.

Any elections made in connection to the Partial Withdrawal Program must be made by October 31, 2023.

The letter indicates what you are entitled to receive this in addition to your election options. Please review the letter in its entirety.

You may visit www.NCRehabWithdrawal.com to make an election.

Unless you elect otherwise, Federal income taxes may be withheld on their withdrawal at a rate of 10% along with any required state tax withholding. The applicable default withholding may be higher for Individual Retirement Accounts (IRAs) under certain circumstances. If you wish to change the withholding for Federal income taxes, then you must make that election by October 31, 2023 on the Partial Withdrawal Portal.

You may also monitor www.bankerslifeinsurance.com and www.cblife.com for updates on the rehabilitation.

PLEASE NOTE: Kroll is the administrator for the partial withdrawal program for Colorado Bankers Life Insurance Company. As such, Kroll is not permitted to provide legal or financial advice.

Regards,
_________________________________________

Kroll Inquiries

Seems like a bunch of clowns running a clown show there.

Is your account a non qualified Annuity? If so, the IRS requires you to pull out all taxable gain first before you can access your principal tax free. This means any deferred interest from CBL you have not already taken(plus any interest not taken from any prior annuity company if you 1035 exchanged an existing NQ annuity into CBL when you started the CBL annuity)

If qualified & traditional IRA, it will all be reported as taxable because traditional plans are funded with pre tax dollars.

If A Roth IRA, none of it will likeky be reported as taxable if over 59 1/2 & you have had a roth more than 5 years, etc. Even if under 59 1/2, you get to access your Roth contributions first tax free before hacijg ti take any gains out

 

[Stephen Round]

When should I receive the paperwork for the 25% withdrawal supposedly happening this fall? I have not received anything yet.

 

[Phyllis Christos]

By the end of September.
Many we know have already received their letters and have a date when they will receive their money.
The letters seem to be staggered but my understanding is everyone will receive one by the end of September.

 

[rats0001]

I called Colorado once and asked for the basis on my non qualified contract. They did not have the info readily available, but called me back and had the wrong figure, but it was higher than what is should be.
Have not gotten my letter, calling Kroll is a complete waste of time as they know nothing, and the oriental woman I always get, I cannot understand half the things she says.
The application form say you can call for the unique ID #, but it seems the # is not assigned until the letter goes out.
Has anybody found the Community Attestation form that is needed for community property sates? I could never find it for the interest only payments.
Finally, has anybody tried to do a 1035 exchange, and had it go thru?

 

[Gtorr]

Have anyone received letter regarding the 25% withdrawal yet? I am in the same boat with my retirement money locked up by CBL insurance scam, we were mislead by our Citizens Bank wealth manager and now he will not return our voicemails or calls.

Yes I got mine, I have no idea what I’m reading. Can you please explain. Says I have annuity contract $6,166 and entitled to receive $1,541? Does that mean I lose the $6,166? Can I close my account and get my money back? I have no idea what’s going on. Thanks

 

[ACDC]

Yes I got mine, I have no idea what I’m reading. Can you please explain. Says I have annuity contract $6,166 and entitled to receive $1,541? Does that mean I lose the $6,166? Can I close my account and get my money back? I have no idea what’s going on. Thanks

The letter simply states that you will get 25% of your $6166. A court ruling released that 25%, you cannot close your account because CBLife is in rehab and the funds are frozen. When the company is finally send to liquidation, the amount you will get back depends on your state insurances guaranty association and how much the government could recover from CBLife’s insurance companies.

 

[Gtorr]

Yes I got mine, I have no idea what I’m reading. Can you please explain. Says I have annuity contract $6,166 and entitled to receive $1,541? Does that mean I lose the $6,166? Can I close my account and get my money back? I have no idea what’s going on. Thanks

The letter simply states that you will get 25% of your $6166. A court ruling released that 25%, you cannot close your account because CBLife is in rehab and the funds are frozen. When the company is finally send to liquidation, the amount you will get back depends on your state insurances guaranty association and how much the government could recover from CBLife’s insurance companies.