I received Form 1099-R
from USAA Federal
Savings Bank showing taxable retirement income
of $51,345. The retirement plan
begain in 1963 while I was serving in the U.S. Navy. The plan was a combination of life insurance and potential future retirement income.
The capital gains
resulted in interest
earned on my contributions from 1963 until my financial situation changed in 1992 due to a company bankruptcy
that caused me to file personal
bankruptcy the same year.
When I could not make monthly cash payments to continue on the plan, the monthly amount was paid in the form of a loan taken on the net value of the policy. This arrangement continued until 2011 when the monthly payment could not be borrowed from the policy and I could not pay from my meager social security benefit
The taxable amount
on the Form 1099-R really reflects the amount of loans taken on the policy. The tax
obligation exceeds $11,000 which I cannot pay now or in the future.
I have no assets
other than an elevan year old Ford, an old computer and printer, a TV, and bedroom furniture. I have current debts exceeding $1,300.
Finally, the question: Can I file a Form 962 showing the $51,345 as a discharge of indebtedness rather than show it as retirement income?