Can I ask what interest payments you are referring to? Thanks.
Colorado Bankers (CB Life)...
- Thread starter FETalk
- Start date
Can I ask what interest payments you are referring to? Thanks.
Phyllis Christos
Expert
- 49
I was referring to the 1% interest payments
- 4,920
Annuities 1099 dont reflect a return on capital.
If it is a Qualified annuity, the 1099 is 100% taxable distribution.
If it is a Roth Annuity, the 1099 is 100% tax free for those over 59 1/2
If it is a Non Qualified Annuity, the 1099 reports all deferred interest as taxable distributions first before any tax free return of principal
I will be surprised if Colorado Bankers doesn't report all distributions as taxable interest on non qualified contract. Accuracy does not seem to be their strong point.
I know my basis due to a 1035 exchange is below the original amount exchanged. I called them to ask what they have as my basis and 2 days later they called me back and reported basis as the amount exchanged into the policy. The other company-Transamerica is using the correct amount.
I deal mostly on the stock side and its called return of capital, maybe in annuities its called return of principal, but its the same thing, getting your own money back.
I know my basis due to a 1035 exchange is below the original amount exchanged. I called them to ask what they have as my basis and 2 days later they called me back and reported basis as the amount exchanged into the policy. The other company-Transamerica is using the correct amount.
I deal mostly on the stock side and its called return of capital, maybe in annuities its called return of principal, but its the same thing, getting your own money back.
I am handling my 80+ year old Dad's finances and am very happy to have found this site!
My Dad is lucky, he and my Mom only had about $25K in a taxable annuity account with CBL. My Mom passed in 2020 so now the stupid account is titled in the name of "My Dad's Name and My Dad's Name" for some reason which I guess is OK but is annoying.
I have waited on hold with CBL multiple times a minimum of 30 minutes before I had to give up, just so I can get online access to work. Nobody answers the phone for the Annuities section, it seems.
When I try to register my Dad's info the site says "No active policies were found with those credentials." but he gets letters in the mail and I setup the 25% disbursement. Maybe the way the account is titled is causing a problem. Has anyone else been successful at looking at/setting up their CBL account online?
Balance is about $19K now after we did the 25% disbursement which I elected to have tax withheld from. I didn't bother setting up the interest payments as I kinda figured it would screw something up or over complicate things. Not worth the trouble for his small balance.
Sorry to hear about all of you with much worse situations than my Dad - he got lucky.
My Dad is lucky, he and my Mom only had about $25K in a taxable annuity account with CBL. My Mom passed in 2020 so now the stupid account is titled in the name of "My Dad's Name and My Dad's Name" for some reason which I guess is OK but is annoying.
I have waited on hold with CBL multiple times a minimum of 30 minutes before I had to give up, just so I can get online access to work. Nobody answers the phone for the Annuities section, it seems.
When I try to register my Dad's info the site says "No active policies were found with those credentials." but he gets letters in the mail and I setup the 25% disbursement. Maybe the way the account is titled is causing a problem. Has anyone else been successful at looking at/setting up their CBL account online?
Balance is about $19K now after we did the 25% disbursement which I elected to have tax withheld from. I didn't bother setting up the interest payments as I kinda figured it would screw something up or over complicate things. Not worth the trouble for his small balance.
Sorry to hear about all of you with much worse situations than my Dad - he got lucky.
Last edited:
- 4,920
sorry to hear that. I honestly doubt you will be able to get this set up like you are hoping for a few reasons. CBL really doesnt exist anymore & merely a 3rd party low bidder likely is doing the service work for the policies. Would think the labor able to be hired by an administrator might be limited in knowledge or ability as the employees likely come & go to find a more permanent job that isnt over when the company finally settles, etc
Do you know if both your mom & dad were joint owners on the contract or just your mom & your dad was the beneficiary?
Have you tried to file a death claim & see if it can be closed out. I thought I read death claims were not being held up. But again, that assumes your mom was the owner/annuitant for a death claim to even be filed
From their FAQ--death claims will be processed without interuption. If your mother was owner or annuitant & dad the beneficiary & your dad didnt do a spousal assumption of the contract as a death claim, he only has 5 years by IRS to close out the account. If what I just said about mom being owner/annuitant & dad the beneficiary is true, it would mean he will have to legally empty it by the end of 2025. Also, because he already took the 25% distribution which reported his deferred taxable gains, the remaining 19K should be almost entirely tax free cost basis of original deposits (assuming it isnt an IRA or qualified money)
Sorry to hear of your loss, my mom passed around that same time also
Thanks. I think the account was a joint tenant account so I'm not sure if that applies. Either way, now it is titled in the name of "My Dad and My Dad" which I think is totally screwed so I guess we will just have to wait until the state takes it over.
- 4,920
Annuities dont operate like bank account or property deeds in terms of them being titled as joint tenants or joint with rights of survivorship.
The way you explain it, it sounds like a claim was filed in the past & the ownership was adjusted in some fashion based on who was the owner & beneficiary. It is possible your dad & mother were joint owners of the annuity & when mom died, dad also shows as replacing mom on her side. Not normally how i have seen those happen, but it is possible
