Colorado Bankers (CB Life)...

[Allen Trent]

Is it possible to get a copy of the policy from CBL or am I SOL if can't find it?

My guess is they either want the policy back or a signed statement it was lost. Most insurance & annuity companies do this because so many people hold on to old policy contracts that already ended, lapsed, matured or were surrendered & it causes a lot of added grief to the family when they dig through the file cabinet/safe after the person died. I have had to help people try to track down dozens of old policies/accounts/stock certificates & 90% of them were worthless as they had already been cashed in surrendered/etc.

Always best to get rid of the old contracts or if they are kept after no longer of value, write in black marker that they expired, cashed in, rolled over, etc.

In this case of CBL, I would definitely hold on to a copy of the policy, especially if you are someone that had more invested than the Guaranty Association will pay.

Is anyone trying to 1035 exchange their CBL to a new Annuity company or do a rollover to a different IRA if the CBL is qualified money? Guessing not being taxed on this upcoming distribution might be of interest to some. Would be added suffering to owe taxes (if CBL account is Traditional IRA) on the entire distribution after losing money from lost interest or not enough Guaranty Association.

 

[ProActive]

Sounds like everyone got their letter? We didn't get ours :(.

Last year when we received our partial payout, to all appearances we had to pay income tax on 100% of the entire annuity even though we only received one quarter of it. I hope we don't get taxed again on the balance.

 

[Dan T]

No letter here, rolled 25% into IRA paid no tax

 

[hatchee]

I have not received a letter yet. Mine is a Roth so my 25% was treated as contributions that had already been taxed. I plan to roll the balance into another Roth to avoid tax on the gains

 

[scagnt83]

Is it possible to get a copy of the policy from CBL or am I SOL if can't find it?

My guess is they either want the policy back or a signed statement it was lost. Most insurance & annuity companies do this because so many people hold on to old policy contracts that already ended, lapsed, matured or were surrendered & it causes a lot of added grief to the family when they dig through the file cabinet/safe after the person died. I have had to help people try to track down dozens of old policies/accounts/stock certificates & 90% of them were worthless as they had already been cashed in surrendered/etc.

Always best to get rid of the old contracts or if they are kept after no longer of value, write in black marker that they expired, cashed in, rolled over, etc.

In this case of CBL, I would definitely hold on to a copy of the policy, especially if you are someone that had more invested than the Guaranty Association will pay.

Is anyone trying to 1035 exchange their CBL to a new Annuity company or do a rollover to a different IRA if the CBL is qualified money? Guessing not being taxed on this upcoming distribution might be of interest to some. Would be added suffering to owe taxes (if CBL account is Traditional IRA) on the entire distribution after losing money from lost interest or not enough Guaranty Association.

Just check the box saying you lost your policy. That question is standard state law to prove ownership and suitability when an outside transaction occurs involving that policy. It is required when an annuity or life policy is replaced by another and is a standard part of applications. But the same law and reasoning would go into this situation as well.

 

[ccwpc]

No letter here, rolled 25% into IRA paid no tax

Are you talking about the 25% distribution from last year? I thought our only options were either to take a check/ deposit into our bank account or transfer over to another annuity? How were you able to roll it into your IRA?

 

[Tahoe Ray]

Are you talking about the 25% distribution from last year? I thought our only options were either to take a check/ deposit into our bank account or transfer over to another annuity? How were you able to roll it into your IRA?

Their annuity was already in an IRA. That's the only way you can do that.

 

[Dan T]

CPA said i could do it, i opened an IRA with Discover bank and sent them the check, drawing 5 %

 

[Tahoe Ray]

CPA said i could do it, i opened an IRA with Discover bank and sent them the check, drawing 5 %

If your annuity wasn't already classified as an IRA, then that's not allowed.

I'm guessing it was, and that's why it was suggested.