I have a client who closed out their policies with USAA last year. The company sent the balance in clients' subscribers savings account to them - it amounted to almost $5,500. From what I could find on the net, it appears this would be treated as a return of premiums and not taxable. Has anyone else had experience with this and is my conclusion correct?
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They also disburse a portion of these accounts every year to subscribers (current policyholders) and it is not a taxable event. -
Thank you for the response. Client will be happy to hear this.Comment
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Interesting
I just got my account summary for last year on thursday. I did not realize they would refund the total. In 1970 stationed in Germany I purchased a "bug" you basically had to insure it with USAA - they understood the military. I stayed with with the house, but never moved all to them. Their explanation on the statement is the traditional we are mutual owned by policyowners and retain a certain amount of your premiums. If anything is taxable it would have to be interest for the eime held from notice to disbursed. They will tell you. thanks for letting me know - you can get some of it.Comment
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