Legal Question in Investment Law in California

I borrowed 10K from my 403-B annunity n 2008. The company states I missed a payment in 2009 and considered the loan defaulted as of 12-21-09 and issued a 1099-R for the balance of the loan. They are also stating that I must still re-pay the loan as it is not a distribution form my account, but a loan from the company!

After speaking to the IRS, they lady and I both concurred that this would cause a double taxitation, now and i the future when I retire.

What do I do, as the company is sure they are correct to 1099-R and bill me?


Asked on 1/22/10, 2:34 pm

1 Answer from Attorneys
Andrew Harrell W. Andrew Harrell, Attorney at Law

Your agreement may be void because of possible fraud in the inducement of the resignation, if your employer was aware or should have been aware that you could not be paid. You should ask to see the specific regulations that prevent you from being paid. (I have dealt with insurance investments and have not heard of this barrier before.)

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Answered on 1/28/10, 11:24 am


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