CD Type Annuities

I am posting this question on behalf of a friend. Her situation is as follows:

She had surgery that cost $20,000. However, her doctors made a mistake on filing her insurance forms, and the insurance company refused to pay. She wound up getting a settlement from the hospital to cover the cost. No lawyers and no court was involved.

The question is, will she be taxed on this amount? If the insurance company had paid, she would not have been taxed. But since it is technically a settlement, would she have to pay? If not, what argument can she make for it if the IRS tries to collect?

We are to receive monthly payments from a liability settlement (details are too painful to go into here). Will these payments be taxable as well as the initial bulk payment of half of the liability amount?

My deceased mother’s investment company wants to take my mother’s annuity and one other account, divide the total between our siblings and then put funds into annuities. I believe what they are doing is trying to keep it out of probate. However, if keeping it out of probate means that this free money will now be subject to penalties and taxes then I do not want to do this.

Do any of you understand what is happening here and if they put my mother’s money into four annuities for the four siblings, then are we subject to penalties and taxes if we withdraw the funds?

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A Comprehensive Plan of Insurance and Annuities for College Teachers.

So, the dream started out like any other zombie dream. It took place at my old elementary school: Harold Oliver. Just add two stories to the top and creepy secret passages and it’s dark and dusty and scary. Me and a bunch of friends, mostly David Douglas kids, were out by the wooden play structure. I’m not going to use real names for privacy reasons, lol.
So we’re just chillin; talkin, and a group of zombies come around the corner.
Everyone ran for the school for shelter. We did the whole keep the zombies out thing.
They got in, we fought for our lives.
I ran into a room where “Gina” was also hiding.
She’s someone that I previously dated and still like, but think that it wouldn’t work out due to over protective parents.
We had this whole talk about how much I love her and how much she loves me. If we got through all this alive, we were going to get married and be together, forever.
After that some zombies broke in and I was fighting them off long enough for “Gina” to get away through a secret passage.
I tried to go right after her, but I was bitten.
So I ended up getting turned into a zombie..
(for some reason the zombies stopped being mean once I was one)

All the people established an area where they had to protect.
If any zombies entered the premises, they were killed.
Us zombies had our own lil settlement outside of the area.

For days, I would just sit and think about “Gina”.
I had to know how she was doing.
I had to let her know I was okay.
Since I could understand the other zombies, I thought maybe the living could still understand me.

So I made a plan to make myself look like I was still living.
I got a bunch of stuff together: backpack, sleeping bag, sword, gun, etc.
This way I looked like I was a survivor and they would let me in.

I went to the school and sneaked in through an unguarded door.
I was on my way to the cafeteria where everyone was.
On my way there a teacher saw me and ran away, screaming bloody murder.
(obviously my disguise didn’t work)
Caused a huge fuss and everyone started going crazy.
Everyone was running down the hall, right past me.
Then I saw “Gina”.
She was still in the cafeteria, just standing there.
I walked up and said, “Gina, It’s me, Dylan. See, I’m okay:) Now we can be together. I missed you so much. I love you”
All she heard was a bunch of jibberishy zombie noises.
She screamed at the top of her lungs and put a knife in my heart..
In my dream I began to cry and plead for her to please realize that I was not going to eat her.
I just wanted to be with her.
Once I realized that my reasoning meant nothing, I got up and pulled a piece of paper out of my pocket, dropped it at her feet, and I ran as fast as I could. Crying as I half sprinted, half limped back to the zombie area.
As I was running down the side pathway, an old teacher of mine came out with a sniper rifle. She warned me to stay away or she would shoot me. Well she started shooting anyway. I continued to try and run, but the pack and stuff that I had on had all-of-a-sudden gotten very heavy and was weighing me down. I ditched it all and ran.
Just as I was almost off the area, “Gina” came around a tree and cut off my head with a machete.
I was gone, obviously:(

She sat down at the base of the tree and pulled the piece of paper out of her pocket.
She uncrumled it to see a letter I had written to her in case of miscommunication.
It read,
“Gina, my love, if you have this letter, then you have probably already run me out of the school. I just wanted to let you know that I am still me.. I want you, I love you, and I miss you…”
There was some other mushy stuff and blah blah blah.
I don’t remember word for word.
She began to cry and she took the machete and slit her wrists.

I know an annuity is a fixed payment over x amount of years, typically for life. But where does the money come from? I mean do annuity payments come from one’s retirement fund, or where?

This was for injury from a car accident in Illinois. I was once told that a good settlement was 1.5x your medical bills. I’m looking for an “adaptable” estimate like the one above as the amount of injury can vary greatly and the medical bills are a good indication of that.

When one will likely earn long-term gains comparable to the market without any risk of loss, what else could be better in today’s environment?
Net Advisor confuses attributes of EIAs with those of variable annuities. The only potential for loss of principle or previous gains is an insurer’s insolvency. Insurance companies have, and can, go under, but no insurance or annuity policyholder has EVER lost value due to a company failure (anyone with Net’s alleged experience knows why). Other than this virtual impossibility, there is no way to lose value in any fixed annuity.
High fees: Guarantees and illustrations are presented net of fees. The numbers are completely transparent. Commissions aren’t high for a one-time, versus transaction fees in most investments.
Free lunch: The companies credit in such a way as to minimize their risk. Over the last decade, however, many EIAs indexed to the S&P actually outperformed that index for three reasons:
1. They offered a bonus on initial deposit.
2. In years when the S&P lost value, the annuities indexed to it didn’t; they earned 0.
3. Gains credited can’t be lost in future downturns.

I forgot to report a direct rollover (no tax liability, $0) on 16a of IRS Form 1040. Does anyone know how to amend the tax return to reflect this information? I don’t see a line for it on 1040x. Any advice is appreciated. Thanks.
Thanks so much for this response. Will do!

I’ve been divorced more than 12 yrs. In the div. decree I was given 1/2 pension and annuity of ex. He retired Jan 2006. I was entitled to more than $100,000 annuity. His city job knew this and had documentation. They mistakenly gave him my entitlement and when requested to return it, he refused and got an attorney. He lost.

Now, my attorney (person not responsible for my win) was handling a case for me against the city. I’ve felt that he has been less than honest. On 3/19/07, a status conference was held, as a result of a conference between my attorney and my ex’s atty, and the city’s atty in Dec. 06, and the outcome was to withhold the money mistakenly given to my ex., pending outcome of a decision in family court. He lost in that decision.
No attys except mine were in the ct room on 3/19/07 and he claimed not to know why. I found out from the clerk that my atty called the ct on Friday claiming that a settlement was reached. I never agreed to a settlement. What do I do

a) the owner can eventually annuitize a certain minimum guaranteed income base regardless of how poorly the owner’s investment choices perform

b)the owner can make withdrawals free of surrender charges if the owner needs long-term care

c)once payouts begin, no payment will ever be less than a specified percentage of the first payment

d) the owner will receive at least a return of principal, in a lump sum, after a specified waiting period