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I took a loan from my metlife annunity

I took a loan from my metlife annunity for $50,000.00 for my sister. She missed 2 payments which she didn't tell me. The balance on the loan was over $35,000.00 which I paid off. They put the loan in default. Received a W-2 form from Metlife for over $35,000.00. Any way of getting this reversed? They charged over $5000.00 interest on this loan which is not deductible. I know I was stupid to do this and I wish I never did believe me. I hate Metlife they are rude and will not even try and work with you. Anyone know if there is something I could do and how this will affect me with my taxes? I' screwed I quess. Thanks for any information or advice.

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Dmcnicholas,

I suppose the insurance company has put the loan in default before you paid off the balance. So, have a talk with them and request them not to consider the loan as default because you've already paid it off.

Are you sure Metlife sent you W-2 form? Metlife hasn't forgiven any part of the debt; you've already paid them. If they simply retrieve from reporting the loan as default, it will help you avoid paying taxes. Otherwise, the IRS could ask you to pay taxes on forgiven debt.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for your reply. Metlife sent me form 1099-R. I tried talking to them they won't consider reversing the default. Yes they did put it in default before I paid off the loan. As soon as I found out my sister had not made a payment I sent them a payment and than paid them off before I tuened 59 1/2 y/o or they would of taken the money from my accuity. Is there anything I can do? Can I do anyhing on my taxes that showed the laon was paid? Seems so unfair to have to pay taxes on money you never really had and the amount of interest they charge and you can't use or deduct .

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Most likely the reason they are unable to modify or correct is due to the fact this was a loan on a tax deferred account. Thus when you miss a payment the entire loan is reportable income to the IRS.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Before you consider to take any loan from your insurance investments, MetLife advisers obligation to you is to explain, how you can take loans or withdrawals. Any action you take, must be explained and it must be suitable.It sounds to me that 50K annuity and 35k loan ??? Sometime you better of to surrender your annuity.You have to sent all your complaints to them in writing.And also complain to the SEC and FINRA. Ibelieve that you can file your complaint on line.Just make sure to keep a copies of eveything.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I need taxes form 1099

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi aparicio,

You can check out the given page for the same: "http://www.irs.gov/pub/irs-pdf/f1099msc.pdf"

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

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