Learn how to claim an income annuity.
Video Duration: 3 minutes 54 seconds
What you need to know about income 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 36 seconds [0:36]
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 47 seconds [0:47]
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 2 seconds [1:02]
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 9 seconds [1:09]
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.
Continue payment: Elapsed time 1 minute 30 seconds [1:30]
For the option to continue payment, beneficiaries decide how to get paid: EFT (electronic funds transfer) or paper check. You can't change your mind after you make this decision, so choose carefully.
Lump sum option: Elapsed time 1 minute 45 seconds [1:45]
For the lump sum option, USAA offers two options for 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.
Most types of annuities include portions that get taxed. The packet details any taxable amounts.
Tax withholding election form: Elapsed time 2 minutes 8 seconds [2:08]
The IRS tells us to use your wages to decide how much tax you pay from annuity payments. This can guide you when you fill out the Tax Withholding Election form. If you want to withhold taxes at a different rate than the IRS guide, then we need your signature. Some states tax these payments, so check with your state for the rules. We encourage you to talk with your tax advisor as needed.
For accounts opened at least five years ago, annuities labeled as Roth IRA usually get paid tax-free.
In the event of your untimely passing and annuity payments remain, some contracts allow you to name a beneficiary. If your packet included a beneficiary designation form, then please fill it out. Otherwise, the remaining benefits will become payable to your estate.
Internal USAA classification: Get your claim done online: Elapsed time 2 minutes 57 seconds [2:57]
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 23 seconds [3:23]
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 3 minutes 40 seconds [3:40]
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 3 minutes 54 seconds [3:54]
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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