Shendado Life Insurance

[Chief]

last year went into receivership. What that means is unclear. A person received a statement to that effect and that there would be noRMD for 2009. Of course we all know that the requirement for RMD's was lifted for the 2009 year. The statement also said for the person to check with his tax person as to the IRS reg 92-10. As far as I can tell that reg pertains to the tele-tax program. Could someone she some light on this?

[ChEAr$]

last year went into receivership. What that means is unclear. A person received a statement to that effect and that there would be noRMD for 2009. Of course we all know that the requirement for RMD's was lifted for the 2009 year. The statement also said for the person to check with his tax person as to the IRS reg 92-10. As far as I can tell that reg pertains to the tele-tax program. Could someone she some light on this?

Doesnt' sound like a regulation number. Don't regulations always begin with something
like a "1.xxxx" ? Maybe it's a revenue ruling from 1992? Try searching for one on the IRS web site.

HOWSOMEEVER>........ you say this insurance company went into receivership? This means bankruptcy probably and this revenue ruling would not pertain to the RMD (which ruling wouldn't date to 1992 anyway),
but perhaps something to do with deductibility on schedule a of the IRA itself if it's totally worthless.
For a taxpayer to deduct such of course, he would have to have no IRA's elsewhere remaining also.

But maybe I read too much into this. (grin

Let us know.

[Burke]

This is Shenandoah Life Insurance Company headquartered in Roanoke VA. It is in receivership, but still "operating" under state control. No new life or annuities are being written, but they are paying death benefits and agents' commissions on old existing business. Cash surrenders have been suspended as well as annuity payments. So if this is an annuity (and it probably is if it was issued by Shenandoah), he may not be able to make any withdrawals from it. Do you have a copy of the letter? Shenandoah's downfall was solely due to the fact they invested assets in Fannie Mae and Freddie Mac, not because they had operating difficulties or lack of income.

[S T]

Another Company

I know of another Insurance Company that is caught in a similar situation, however, this other company is stating that they will distribute the withdrawals for RMD.

Since RMD's were suspended for year 2009, Chief, you should look to see how Shenadoah is going to handle the year 2010 RMD.

Sandy

[veritas]

The number suggests

last year went into receivership. What that means is unclear. A person received a statement to that effect and that there would be noRMD for 2009. Of course we all know that the requirement for RMD's was lifted for the 2009 year. The statement also said for the person to check with his tax person as to the IRS reg 92-10. As far as I can tell that reg pertains to the tele-tax program. Could someone she some light on this?

a Revenue Procedure.

[Chief]

Thanks

to all you who posted. The Board is invaluable with people like you.