client surrender insurance use 50,000 to open a cd could she get a credit?

Forum|Forum|3 years ago
April 29, 2023
2 replies
23 views

she had a outstanding balance of 31,915.54 from loan, and the remaining she use to open a certificate of deposit

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Best answer by IRonMaN

Nope

IRonMaNAnswer

Level 15

Nope

Slava Ukraini!

T

TinabrookylnAuthor

Level 3

thank you, what about the outstanding loan balance that was paid, should a 5498 be filed.

IRonMaN

Level 15

Trustees fill out 5498s when they are needed, not individuals.

Slava Ukraini!

qbteachmt

Level 15

Form 5498 is what a brokerage or financial institution fills in when the taxpayer puts new money into a retirement account (Trad IRA, SEP IRA, Roth IRA) or rolls/converts. Think of it as proof of a deposit.

You didn't explain what type of insurance policy this was. You didn't explain what sort of loan got paid off. And you didn't ask about a specific type of credit. Is there something specific you thought might apply?

A CD is a type of investment. That could have been purchased using money inside of an IRA or retirement account. Or, it is from funds on hand that simply are ordinary funds, such as from a job or from selling a car or something.

More details sure would be helpful.

Don't yell at us; we're volunteers

T

TinabrookylnAuthor

Level 3

thank you, she close out her life insurance from her place of employment, it was a Roth IRA, and also took out a loan for about $20,000. they paid the balance of loan which was about $31,000, taxable amount was around $43,000. she open a certificate of deposit in a bank the amount $50,000.

T

TinabrookylnAuthor

Level 3

she did not received cash in her hand only about $10,000, so my question was, could she get credit for the deposit of the 50,000 beca use they are charging her $9000.00 in additional taxes.

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