Yes, you can withdraw money from your MetLife annuity, but the process and consequences vary significantly depending on the type of withdrawal, your age, the terms of your specific contract, and how long you've owned the annuity. It's crucial to understand that annuities are long-term financial products designed for retirement income, and early withdrawals can incur substantial penalties and taxes.
Navigating Your MetLife Annuity Withdrawal: A Step-by-Step Guide
Withdrawing funds from your MetLife annuity requires careful consideration and adherence to specific procedures. Let's break down the process step-by-step to help you make an informed decision.
Step 1: Engage with Your Annuity – Understand Your Contract!
Before you even think about filling out a form, the most critical first step is to fully understand the terms and conditions of your specific MetLife annuity contract. Do you know what kind of annuity you have? Is it a variable, fixed, or indexed annuity? Does it have any income riders? Each type of annuity and its riders will have different withdrawal rules, surrender charge schedules, and tax implications.
Locate Your Contract Documents: Dig out your original annuity contract. This document is your go-to source for detailed information regarding withdrawal options, surrender periods, charges, and any riders you may have.
Log In to Your MetLife Account: If you haven't already, register and log in to your MetLife online account (e.g., mlr.metlife.com). This portal often provides access to your account balance, policy statements, and sometimes even the necessary withdrawal forms. Look for sections like "Account," "Balance," or "Overview."
Identify Your Annuity Type and Riders: Your contract will specify if you have any riders, such as a Guaranteed Withdrawal Benefit (GWB) rider. These riders can significantly impact how much you can withdraw without penalty and the income stream you receive.
Step 2: Determine Your Withdrawal Type and Purpose
Once you're familiar with your contract, you need to decide why you're withdrawing funds and how much you need. This will dictate the type of withdrawal you pursue.
Partial Withdrawal:
What it is: Taking out a portion of your annuity's accumulated value.
Common reasons: Unexpected expenses, supplementing retirement income, or reallocating funds.
Considerations: Many annuities allow for a certain percentage (e.g., 10%) of the account value to be withdrawn annually without incurring surrender charges. However, ordinary income taxes will still apply to the taxable portion of the withdrawal, and if you're under 59½, a 10% federal income tax penalty may also be assessed unless an exception applies.
Impact: A partial withdrawal reduces your annuity's account value, which can affect future income payments and death benefits.
Full Surrender (Lump Sum Withdrawal):
What it is: Cashing out your entire annuity contract.
Common reasons: Urgent financial need, dissatisfaction with the annuity's performance, or a desire to invest elsewhere.
Considerations: This is typically subject to the highest surrender charges, especially if done within the initial years of the contract (often 7-9 years). You'll also face ordinary income taxes on any gains, and potentially a 10% federal income tax penalty if under 59½.
Impact: You lose all future benefits and guarantees associated with the annuity, including any lifetime income streams or death benefits.
Annuitization (Converting to Income Payments):
What it is: This isn't a "withdrawal" in the traditional sense, but rather converting your annuity's accumulated value into a guaranteed stream of income payments for a set period or for life.
Common reasons: Planning for retirement income.
Considerations: Once you annuitize, you typically cannot reverse the process or take lump sum withdrawals. The tax liability is generally spread out over the payment period.
Death Benefit Withdrawal (for Beneficiaries):
What it is: If you are a beneficiary of a MetLife annuity, you can claim the death benefit.
Common reasons: The contract owner has passed away.
Considerations: Beneficiaries will need to submit a death notification and complete a separate claim form. The payout options (lump sum, installment payments, spousal continuation) and tax implications will vary based on the beneficiary's relationship to the deceased and the chosen option.
Step 3: Gather Necessary Documentation
Regardless of the withdrawal type, you'll need specific documents to complete your request. Having these ready will expedite the process.
Your MetLife Annuity Contract Number(s): This is crucial for identifying your account.
Your Social Security Number (SSN) or Taxpayer Identification Number (TIN): Required for tax reporting purposes.
Valid Photo Identification: (e.g., Driver's License, Passport) – for identity verification.
Bank Account Information: (Bank Name, Account Number, Routing Number) – for direct deposit of funds. A voided check or bank statement may be required.
Completed MetLife Annuity Withdrawal Form: This is the primary form for all withdrawal requests. You can usually find it on the MetLife website's self-service or annuity forms section (e.g.,
metlife.com/annuityforms For Rollovers: Information for your new IRA or employer's retirement plan, including the new account number.
For Death Benefit Claims: Original or certified death certificate (photocopy may be acceptable for certain amounts), and court-issued appointment papers if claiming on behalf of an estate.
Step 4: Complete the MetLife Annuity Withdrawal Form ✍️
This form is essential for all withdrawal requests. Follow the instructions carefully to avoid delays.
Download the Form: Visit
metlife.com/annuityforms Fill Out All Required Sections: The form will typically have sections for:
Your Information: Full name, SSN/TIN, date of birth, contact details.
Account Information: Your annuity contract number(s) and reason for withdrawal (e.g., retirement, separation from employment, hardship).
Withdrawal Instructions: Specify if it's a partial or full withdrawal, the amount or percentage, and how you want the funds paid (e.g., direct deposit, check, rollover).
Tax Withholding: You'll need to indicate your federal and state tax withholding preferences. Federal taxes are generally withheld at 20% by default unless you specify otherwise. It's highly recommended to consult a tax advisor regarding tax implications.
Delivery Options: How you wish to receive the funds (e.g., electronic funds transfer (EFT) to your bank, check by mail).
Signatures and Consent: Don't forget to sign and date the form. Ensure the date is the current date, not your birth date.
Review and Double-Check: Errors or omissions can significantly delay your request. Carefully review every section to ensure accuracy and completeness.
Step 5: Submit Your Request
Once your form is meticulously completed and all supporting documents are ready, it's time to submit your request to MetLife.
Online Submission (if available): Many providers, including MetLife, offer secure online portals for uploading documents. Log in to your account and look for an "Upload documents" or similar option. This is often the fastest and most efficient method.
Mail: Send your completed form and copies of supporting documents via postal mail to the address provided on the form or on the MetLife website for annuity services. Consider using certified mail for tracking purposes.
Fax: Some forms may provide a fax number for submission.
Important Note: Always keep a copy of all submitted documents for your records.
Step 6: Monitor Your Request and Receive Funds ⏳
After submission, MetLife will process your request.
Check Status Online: You can usually track the status of your withdrawal request through your MetLife online account.
Processing Time: MetLife typically processes withdrawal requests within a few business days of receiving the completed form. However, some requests may be subject to an administrative review period, which could take longer.
Confirmation: You will usually receive a confirmation of your withdrawal once it has been processed.
Receiving Funds: Funds can be received via direct deposit (electronic funds transfer) to your bank account, or a check mailed to you. Direct deposit is generally faster.
Important Considerations Before Withdrawing ⚠️
Surrender Charges:
Annuities often come with surrender charges if you withdraw funds within a certain period (e.g., the first 5-10 years) after purchasing the contract or making additional contributions. These charges can be substantial, sometimes as high as 7-9% in the first year, and typically decrease over time.
Some contracts offer a "free corridor" (e.g., 10% of the account value) that you can withdraw annually without incurring surrender charges. However, this varies by contract.
Tax Implications:
Withdrawals from deferred annuities are generally taxed as ordinary income on the earnings first (Last-In, First-Out or LIFO accounting). This means any gains in your annuity are taxed before your principal contributions.
If you withdraw funds before age 59½, the taxable portion may also be subject to an additional 10% federal income tax penalty, unless a specific IRS exception applies (e.g., disability, death, substantially equal periodic payments).
Non-qualified annuities (purchased with after-tax money) offer tax-deferred growth, meaning you don't pay taxes on earnings until withdrawal.
Qualified annuities (purchased with pre-tax money, e.g., within an IRA or 401(k)) are typically fully taxable upon withdrawal.
Always consult a qualified tax advisor to understand the specific tax implications for your situation.
Loss of Benefits and Guarantees:
Partial or full withdrawals will reduce your annuity's account value. This can decrease the amount of future income payments you would receive if you eventually annuitize and can also lower any death benefits payable to your beneficiaries.
If you have riders like guaranteed minimum withdrawal benefits (GMWB), withdrawals exceeding the guaranteed amount could impact or even terminate these valuable benefits.
Market Fluctuations (for Variable Annuities):
If you have a variable annuity, the value of your sub-accounts can fluctuate with market performance. Withdrawing during a market downturn could mean you're selling at a loss.
Alternatives to Full Withdrawal:
Before surrendering your entire annuity, consider if a partial withdrawal or a loan (if available and applicable to your specific annuity, though less common for individual annuities) might meet your needs without incurring such significant penalties.
If you need ongoing income, annuitizing your contract might be a better option than a full surrender.
Frequently Asked Questions (FAQs) About MetLife Annuity Withdrawals ❓
How to calculate the surrender value of my MetLife annuity?
The surrender value is generally the current market value of your annuity minus any applicable surrender charges and outstanding loan balances. MetLife typically calculates this for you when you request a withdrawal. You can also contact MetLife customer service for a current surrender value quote.
How to avoid surrender charges on my MetLife annuity?
You may be able to avoid surrender charges by waiting until the surrender charge period specified in your contract has expired. Many annuities also allow for a "free withdrawal" amount (e.g., 10% of the account value) annually without incurring surrender charges.
How to minimize taxes on MetLife annuity withdrawals?
To minimize taxes, consider withdrawing funds during years when you anticipate being in a lower tax bracket. For those under 59½, try to qualify for an IRS exception to avoid the 10% penalty. Rollovers to another qualified retirement account can defer taxes. Consulting a tax advisor is crucial for personalized strategies.
How to get my MetLife annuity death benefit as a beneficiary?
To claim a death benefit, contact MetLife's annuity claims department. You'll typically need to submit a death notification, a completed claim form, and a copy of the death certificate. MetLife will guide you through the process and available payout options (lump sum, installments, spousal continuation).
How to check the status of my MetLife annuity withdrawal request?
You can generally check the status of your withdrawal request by logging into your MetLife online account (e.g., mlr.metlife.com) or by calling MetLife customer service.
How to change my banking information for MetLife annuity payments?
You can usually change your banking information by completing a specific form (e.g., an Electronic Funds Transfer (EFT) form or a banking information update form) available on the MetLife website or by contacting customer service. You'll typically need to provide a voided check or bank statement.
How to understand if I have an income rider on my MetLife annuity?
Refer to your original annuity contract documents. Income riders, such as a Guaranteed Withdrawal Benefit (GWB), will be explicitly mentioned. If you can't find your contract, contact MetLife customer service to inquire about any riders on your policy.
How to contact MetLife customer service for annuity inquiries?
You can typically find MetLife's customer service contact numbers for annuities on their official website under the "Support & Manage" or "Contact Us" sections. The general annuity support number is often 1-800-343-8496.
How to reallocate funds within my MetLife variable annuity?
If you have a variable annuity, you can usually reallocate funds among the available investment options (sub-accounts) by logging into your online account or by contacting MetLife. This process is generally separate from a withdrawal request.
How to determine if a MetLife annuity withdrawal is right for me?
Determining if a withdrawal is right for you involves evaluating your immediate financial needs against the long-term benefits and potential penalties of your annuity. Consider the surrender charges, tax implications, and how it impacts your retirement goals. It's highly advisable to consult with a financial advisor and a tax professional before making any decisions.