Learn how to claim a deferred annuity.
Video Duration: 4 minutes 15 seconds
What you need to know about deferred annuity claims: Elapsed time 0 seconds [0:00]
We know this must be a difficult time for you and your family. We're here to support you through the steps needed to receive what your loved one provided for you.
You should have a packet of information and forms sent to you by USAA that shares information about your claim and how to move forward. If you don't have this, please call USAA at 800-531-8455.
In your packet, the Contract Information Sheet gives you the contract details including taxable amounts as well as payout options. You use this info to help you complete the forms in the packet.
Claimant statement: Elapsed time 38 seconds [0:38]
The first section of the Claimant Statement gathers important info about you and the claim. Be sure you complete and sign the form. The claim requires your signature.
Substitute W-9 form: Elapsed time 49 seconds [0:49]
The next section of the Claimant Statement holds the Substitute W-9 form. The IRS requires that you sign and date this for us to pay the claim. If the beneficiary is a trust, you must fill out the Certification of Trust section, too
Fraud warnings: Elapsed time 1 minute 4 seconds [1:04]
The rest of the pages on this form contain fraud warnings. You can check if there are warnings for your state.
Internal USAA classification: Public annuity claim settlement request form: Elapsed time 1 minute 11 seconds [1:11]
The Annuity Claim Settlement Request form tells us how to pay the claim. All deferred annuities for individuals offer these options: lump sum, deferral or annuitization. For trust or estates, options include lump sum or deferral.
Two payout options: Elapsed time 1 minute 28 seconds [1:28]
For taxable lump sums, the beneficiary owes taxes in the year the payment is received. You can choose the timing of the lump sum payment depending on the account type. Qualified accounts offer two options: payment of the entire amount immediately or deferral for up to 10 years. Non-qualified accounts also offer two options: the entire amount immediately or deferral for up to five years.
Lump sum option: Elapsed time 1 minute 53 seconds [1:53]
USAA offers two options for lump sum delivery: paper check or bank wire. If you choose a paper check, then you don't need to give us bank information. If you choose a bank wire, there may be a $20 wire fee.
Annuitized claim proceeds: Elapsed time 2 minutes 8 seconds [2:08]
The IRS allows the claim proceeds to be annuitized, which spreads the tax liability over several years along with payments. Typical time frames allowed range from 5 to 10 years. Payments must begin no later than one year after the date of death. Once the payments begin, you can't change or stop this permanent payment plan. For a quote, call 800-531-8455.
Qualified annuity accounts offer an extra option — transfer into an inherited IRA.
Beneficiary designation form for spouses: Elapsed time 2 minutes 40 seconds [2:40]
We offer spousal beneficiaries a unique option — keep the contract or change ownership to themselves. Spouses, if you choose this option, fill out the Beneficiary Designation form to tell us who gets the proceeds upon your passing. Your signature is required.
Public beneficiary designation form for spouses: Elapsed time 2 minutes 58 seconds [2:58]
For taxable payments, the standard federal withholding rate serves as the default rate for taxes unless you specify otherwise. You can tell us if you want a different rate by filling out, signing and dating the Tax Withholding Election form. State withholding may apply. Please check with your state for the withholding requirements. And consult with your tax advisor as needed.
Get your claim done online: Elapsed time 3 minutes 20 seconds [3:20]
You can get your claim done faster if you send us your forms online at usaa.com or the USAA Mobile App. When you log on to usaa.com, select your initials, select “Inbox,” select “Send Documents to USAA,” then select “Life insurance/Health/Annuities.” On the mobile app, select your initials, then select “Send Documents to USAA.”
Good order review: Elapsed time 3 minutes 47 seconds [3:47]
When we receive your paperwork, we confirm the forms are complete and match information we have. We call this a good order review. If we need more info, we'll contact you. Otherwise, please allow up to 10 business days for us to work on your claim.
Call us today: Elapsed time 4 minutes 03 seconds [4:03]
Finally, we want to help make this as quick and easy for you as we can. For any question or concern, call us at 800-531-8455.
End: Elapsed time 4 minutes 15 seconds [4:15]
Annuity claims FAQ
It depends. Generally, payouts on annuity claims are taxed as ordinary income.
But the rules may be different if the annuity was funded by a Roth IRA. Payouts are typically tax-free if the Roth IRA owner had the account for more than 5 years before they died.
Also, payouts from a qualified or nonqualified immediate annuity may be fully taxable. The payouts could have what's called an exclusion ratio calculation applied to them. This determines how much of each annuity payout isn’t taxed.
Each taxpayer's position is unique. If you have questions about your personal tax situation, consult a tax advisor.
The options vary depending on the type of claim. There’s a claim settlement request form included in your packet. It shows your options and asks you to choose how you want to get paid.
Life insurance: You can choose a paper check or bank wire. There may be a $20 fee for domestic wire transfers.
Immediate annuities: You can continue to receive payouts or take a lump sum. If you choose to continue payouts, you can pick electronic funds transfer (EFT) or paper check. You can’t change your mind after you make this decision, so choose carefully.
For lump sums, you can choose a paper check or bank wire. There may be a $20 fee for domestic wire transfers.
Deferred annuities: For individuals, your options are lump sum, deferral or annuitization, which spreads the tax liability over several years along with payouts. You’ll need to submit all the requirements 45 days before the one-year anniversary of the annuity owner’s death.
For trusts or estates, options include lump sum or deferral.
For lump sums, you can choose a paper check or bank wire. There may be a $20 fee for domestic wire transfers.
Request a claim information packet.
Call us to have a claim information packet sent to you that includes forms you need and next steps.
For TTY devices, dial 711
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