Agent Alert: New and Improved Beneficiary Account Options

New and Improved Beneficiary Account Options

Starting Sept. 4, American National Insurance Company will offer new account types for inherited or “stretch” accounts, which were previously unavailable. At American National, these will be recognized as Beneficiary Annuities and Beneficiary IRAs.

We invite you to explore the advantages that these stretch account types can provide, as outlined below.

Non-Qualified Beneficiary Annuities (New!)  

• Extended Payouts: Beneficiaries can receive annuity payouts over an extended period, rather than taking a lump sum distribution.
• Tax Efficiency: Spreading out distributions can potentially reduce tax liabilities.
• Long-Term Growth: This strategy can maximize the long-term growth potential of the annuity.

Qualified Beneficiary IRAs

• Expanded Eligibility (NEW!): Previously, only spouses were eligible when the date of death was before January 1, 2020. Now, both spousal and non-spousal beneficiaries are accepted, regardless of the date of death.
• Designed for Retirement: These accounts are specifically designed for retirement accounts like IRAs or 401(k)s.
• Tax-Efficient Growth: Stretching distributions over a beneficiary’s life expectancy offers a tax-efficient way to preserve and grow retirement assets.
• Steady Income Stream: Ensures a steady income stream for beneficiaries.

These changes provide more options and flexibility for beneficiaries, making stretch accounts a valuable tool for estate planning, retirement income strategies, and overall financial planning.

Annuity Application Update

With this new offering, we have an updated Annuity Application.

As a reminder, processing is determined by the date of signing. Applications signed on or after September 4 will need to utilize the new versions. However, any applications signed prior to September 4 will continue to use the current version.

Please note: All online electronic application platforms will automatically generate the correct form for your convenience.