Is annual distribution taxable as unearned income

[tightasadrum]

I'm buried in tax stuff, and I have a question.

To USAA-insured folks:

Is the Annual Subscriber Account distribution taxable as unearned income? Now that they're throwing the senior bonus my way also, it's beginning to look like real money. Somewhere way back in my memory there is a little noise that says this is a transfer of asset that already has my name on it, therefore not taxed. But I may just be wishfully dreaming this.

Does anyone know?

 

[kaneohe]

from here: https://www.usaa.com/inet/pages/faq_PC_Subscribers_Account_Distribution_index

A Subscriber's Account distribution is considered a return of premium and usually is not considered taxable. Consult your tax adviser for more specific information.
Don't know the circumstances when "usually" is not applicable.....call them......

 

[tightasadrum]

Thanks. That's what I wanted to see.

I'll mention it to my tax guy.

 

[kaneohe]

If it were taxable, I'm guessing you'd be getting a tax document like
1099-INT or 1099-DIV so if you'be been receiving the distributions for
a number of yrs and haven't received those tax docs.............couldn't be
lost in the mail for that many yrs.

 

[RE2Boys]

The SSA distribution would only effect your taxes if you were using the asset your insuring for business purposes. If you were taking actual expenses and using your car for business, then you would need to reduce your insurance premiums paid by a some factor as the SSA is considered a return of insurance premiums.

 

[jclarksnakes]

How old do I have to be to get the senior bonus?

 

[Nords]

How old do I have to be to get the senior bonus?

REWahoo said in an earlier thread:
http://www.early-retirement.org/for...uto-insurance-after-re-59964.html#post1160053

After 40 years, USAA starts distributing 10% of your account back to you each February.

There's a link to the SSA FAQs on USAA's website, but I can't get it to come up. Next time you log in you might search for "Subscriber Savings Account".

 

[jclarksnakes]

REWahoo said in an earlier thread:
http://www.early-retirement.org/for...uto-insurance-after-re-59964.html#post1160053


There's a link to the SSA FAQs on USAA's website, but I can't get it to come up. Next time you log in you might search for "Subscriber Savings Account".

Oh geez! More cash after I am too old to spend it. Actually I have around 31 years with USAA now so it might be okay.