Mon Sep 24, 2012, 06:58 PM
mgcgulfcoast (1,027 posts)
HOW long does it take to get my annuity money?
i want to cash out my annuity of 35,000. i dont have to pay a surrender charge since ive had it so long. i started it with 15k and i want to cash it out. i have the paperwork and contract num. can i get the money within a week? they give me the option of direct deposit into my bank account.
8 replies, 15511 views
HOW long does it take to get my annuity money? (Original post)
|Recovered Repug||Sep 2012||#4|
|A HERETIC I AM||Sep 2012||#6|
|A HERETIC I AM||Sep 2012||#8|
Response to mgcgulfcoast (Original post)
Mon Sep 24, 2012, 10:02 PM
A HERETIC I AM (16,466 posts)
6. You have a contract.
Those details should be spelled out in it.
It will depend on the contract. The estimate of 182 days would be EXTRAORDINARILY long. If the annuity is beyond the surrender period (meaning any surrender charges have expired, which you say is the case) then you should be able to get it in rather short order - a week or less.
Call the broker or the representative named on your statement. There has to be a named representative - either the broker who sold it to you in the first place or the broker who has had it assigned to him if the original broker is for what ever reason, no longer servicing the account. The only circumstance where a broker or representative is not named is if it is considered a "House Account". If the annuity was originally sold through a brokerage and you have an account there that the security is held inside, you are likely getting two statements. One from the brokerage which will show value and not much more, and a more thorough statement from the insurance company directly.
Essentially, the Annuity company is given a liquidation order. They sell any securities held and that will settle to their account in 3 days. Then is it simply a matter for the company to either issue you a check, credit the brokerage account the annuity is held with cash or wire it to another account you direct.
It isn't complicated and it won't take 6 frickin months.
Call the broker or the annuity company directly. Have your statement in front of you when you do.
DU has a "Personal Finance and Investing Group" for just these types of questions. I am a regular contributor on questions I am qualified and comfortable to answer.
Disclosure; I have held a Series 7 General Securities License, which allowed me to trade every type of security except Commodities and Futures, a Series 66 General State Law License, which allowed me to legally call myself a "Financial Advisor", A Florida State Insurance License for Life and Health insurance and Variable Annuities and an "Accredited Asset Management Specialist" designation from the College of Financial Professionals. They have all expired, as I have been out of the business for 3 years ( I left the firm, in July, 2009. They expired 24 months later)
Response to mgcgulfcoast (Reply #7)
Mon Sep 24, 2012, 10:53 PM
A HERETIC I AM (16,466 posts)
8. Good. (IMPORTANT EDIT!)
Best of luck, and be wise and smart with your cash.
All the best.
Oh....and make sure you talk to your tax preparer or at least read up on the IRS website about any potential tax liability. The IRS is likely to look at this $35,000 much like a raise in salary you might receive. Be prepared for the tax liability. Gains in Annuities are tax deferred, meaning you didn't pay any taxes on the gains you made over the years on a year to year basis. You won't be liable for capital gains in this case, but you are likely going to owe something, unless this was purchased inside a Roth and you are older than 59 1/2 years old.
Seek professional advice in your area from someone you know.