Annuities FAQs: MetLife Accumulation Annuity
May I purchase the MetLife Accumulation Annuity?
The MetLife Accumulation Annuity is not available to new investors at this time.
What if I own the MetLife Accumulation Annuity and have questions?
You can contact your Fidelity representative or call MetLife at 800‐638‐7732 for assistance with any questions specific to your contract.
How are my assets protected against loss?
At issue, the Preservation and Growth Rider (PGR) is purchased as part of the MetLife Accumulation Annuity, and guarantees that your Account Value will not be less than the Purchase Payment (less proportional reductions for any withdrawals and any related withdrawal charges), referred to as the guaranteed amount or "PGR Amount"1, at a specified date (PGR End Date) at least 10 years from the Contract Date. On the PGR End Date if your Account Value is less than your PGR Amount, a one-time benefit payment will be made to bring your Account Value back up to your PGR Amount. After the PGR End Date, any Account Value not withdrawn will remain invested in the annuity but will not be protected against market volatility.
How are my assets invested?
Your assets are invested in the Fidelity VIP FundsManager 60% Portfolio2 — a fund that invests in other Fidelity funds and is designed to provide diversified exposure across several major financial asset classes3. This fund targets a strategic allocation of 42% domestic equities, 18% international equities, 35% fixed income, and 5% money market funds. Please note that for California purchasers age 60 and older, Purchase Payments may be allocated to the Fidelity VIP Government Money Market Portfolio4 during the Free Look period to ensure a return of Purchase Payment if the contract is canceled during the period. After the Free Look period expires, the Account Value will be transferred to Fidelity VIP FundsManager 60% Portfolio.
When can I gain access to my assets?
The annuity allows a participant to withdraw up to 10% of the Purchase Payment plus all earnings each Contract Year free of withdrawal charge. Withdrawals in excess of earnings and 10% of the Purchase Payment taken during the first seven contract years are subject to a 2% withdrawal charge. In addition, when you make a withdrawal, the PGR Amount is reduced by the same proportion that the amount of the withdrawal (including any related withdrawal charge) reduces the Account Value5. This reduction may be significant, particularly when the Account Value is lower than the PGR Amount.
How are my assets taxed on withdrawal?
This depends on how you fund your annuity. If you fund your annuity with pre-tax assets, such as those from a 401(k) rollover, all your distributions will be taxed at your ordinary income tax rate since the assets used to purchase the annuity have never been taxed. If you fund your annuity with after-tax assets, such as those from a nonretirement brokerage account, you are only taxed on any gains at your ordinary income tax rate. In this situation, gains are paid out first before cost basis. Keep in mind that taxable amounts withdrawn from a tax-deferred account prior to age 59½ may be subject to a 10% IRS penalty. Withdrawals of taxable amounts from a non-qualified annuity may also be subject to the 3.8% Unearned Income Medicare Contribution tax if your modified adjusted gross income exceeds the applicable threshold amount.
If I recently purchased a MetLife Accumulation Annuity, is there a period of time when I can cancel my contract without penalty?
Yes, the law of the state which governs your contract allows you to cancel your contract without penalty for a limited period of time, known as the Free Look period. The length of the Free Look period varies by state, but is never less than 10 days from the day you receive your contract.
Can I make subsequent Purchase Payments to the annuity after it has been issued?
You cannot make subsequent Purchase Payments. Any funds that are to be included as the initial Purchase Payment must be stated on the application.
What happens to my assets after I die?
With the MetLife Accumulation Annuity, while the PGR is in effect, your beneficiaries will receive the greater of the Account Value or the PGR Amount.
If you pass away after the PGR End Date, your beneficiaries will receive the greater of the initial Purchase Payment, adjusted proportionally for withdrawals, or the Account Value.