Skip to main content

You are here

Advertisement


Tech Talk: Tax Treatment of Defaulted Loans

You have a client with defaulted loans on a fixed annuity. He has been told that when he takes a full distribution, the defaulted loan and the accrued interest will be reportable as a taxable distribution. In Tech Talk, Susan Diehl tells us whether it is correct that he would, in effect, pay taxes twice on the amount of the defaulted loans.