Colorado Bankers (CB Life)...
- Thread starter FETalk
- Start date
- 4,920
Only your tax preparer or your tax software can answer that because every persons income & standard deductions are different. Many owe 0% while others might owe 10, 15 or 25% etc in federal. Same for state withholding as some have no state income tax & others have high state income tax
I would not trust them CBL or Kroll to send the withheld taxes to the government. linberg might just be around to steal them, who knows what's really going on there.
I'd just send a check to IRS or state tax people as an estimated payment after receipt of the money.
I think I read that these withheld taxes are paid to IRS in January of the following year in a lump sum.
I'd just send a check to IRS or state tax people as an estimated payment after receipt of the money.
I think I read that these withheld taxes are paid to IRS in January of the following year in a lump sum.
Stephen Round
Expert
- 30
After FOUR YEARS of fighting to get our money back, we finally received a check for 25% of what CB owes us this week. Better than nothing, I guess....
But how long 'til we receive the balance?
Also, has anyone looked into a class-action lawsuit against Citizen's bank? We would be interested in joining it.
But how long 'til we receive the balance?
Also, has anyone looked into a class-action lawsuit against Citizen's bank? We would be interested in joining it.
So yay, some of us received 25% of our funds back. My question is, for those of us excess policyholders: if/when the CBL goes into liquidation and the state guaranty associations are activated to pay us up to their caps, will the 25% be deducted out of the amount they pay us, and they will therefore only pay us 75% of the amount? i.e. someone has an annuity for $800,000. Now they receive 25% of their funds back, $200,000. They are still owed $600,000. In a liquidation scenario, if the state guaranty association’s cap is $500,000, would the customer (victim) be paid $500,000? Or would they be paid $500,000- $125,000 (25%)= $375,000?
- 4,920
I dont know this for a fact, but I would assume if the 25% is part of the liquidation, it will be an advance of the total from the guaranty association. That is how I always understood the guaranty association to work: it would make up the difference to get you back in total up to the state guaranty limit in total. Otherwise, it would have potentially rewarded those that took a lot from their contracts over the years & punished those that never took any distributions.
So, in your example, I believe if someone got $200k as 25% of their $800k current value, the $200k would be subtracted from the state guaranty. In a $300k state ($300k-200k = $100k). In a $500k state ($500k - $200k = $300k.
again, with so little experience out there with failed insurers, 99% of agents in the industry have never went through this to see how it plays out in each scenario as some carriers have no assets & others may have more sizeable assets, etc. I may be completely wrong on my understanding as to how previous distributions impact what state guaranty association would pay in the end
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I may be wrong but technically and officially, CBL isn't in a liquidated status right now when the 25% is being distributed so it shouldn't count towards the SGA limit. Thoughts?
