I CAN make the most of my qualified retirement assets. MetLife Income Annuity SM

Transcription

1 I CAN make the most of my qualified retirement assets MetLife Income Annuity SM

2 meet Allison Hypothetical Example. For Illustrative Purposes Only. Allison, age 70, is a retired business woman who must begin taking distributions from her qualified account next year. Her husband, Nick, passed away last year and she s taking this opportunity to reevaluate her retirement strategy. Allison s current retirement approach includes: Using $1,500 from her Social Security benefits and $1,000 from Nick s pension per month to pay for her day-to-day expenses, $100,000 in an Individual Retirement Arrangement (IRA), and $50,000 in a brokerage account. Allison s IRA and brokerage account are both invested for growth potential, but like many investors, she has concerns about market volatility. She wants to know more about how to efficiently make the most of her retirement savings and also be sure to take her required minimum distributions each year. Allison talks to her financial professional and based on her particular set of facts and circumstances, they come up with two options of how to supplement her income while making sure her required minimum distributions are met.

3 Let s look at an example... Allison s options option Allison must begin taking her annual required minimum distributions from her Individual Retirement Arrangement when she turns 70½. She will pay the taxes on the taxable amount withdrawn and then she can deposit the remainder into her brokerage account. This means that as she fulfills her required minimum distribution, her brokerage account and the remaining qualified plan money are still subject to the ups and downs of the market. option Allison can use the $100,000 in her IRA to purchase a qualified MetLife Income Annuity 1 to help supplement her income. Her financial professional gives Allison a quote for the Lifetime Income Only option, which provides the highest income payment amount for as long as she lives. Allison may consider this option since she needs to receive the maximum amount of income possible and does not plan on leaving money or income for a beneficiary. This option helps Allison reduce some of her exposure to volatility because her income annuity is not subject to market risk. This means the MetLife Income Annuity can be a valuable complement to Allison s overall retirement strategy and may help her get the most out of her money. Additionally, the income payments from Allison s IRA contract should satisfy the RMD requirement for life, meaning she doesn t have to worry about manually taking her RMDs for this contract each year. 2 $8,000 $7,000 $6,000 option 1 option 2 $5,000 $4,000 $3,000 $2,000 $1,000 $ AGE This hypothetical example is for illustrative purposes only. It assumes an initial purchase payment of $100,000 and a Lifetime Income Only payment option for the income annuity. Rates are subject to change, and payouts will vary with life expectancy. The annual rate of return used for the IRA in the example is 3.0%. The effect of federal, state and other taxes are not taken into consideration for purposes of this illustration. Actual results will vary. 1 Referred to as Single Premium Immediate Annuity and MAX Income Single Premium Immediate Annuity in the contract and on related forms. 2 The MetLife Income Annuity payments from an Individual Retirement Annuity contract will typically satisfy the RMD requirement for that particular Individual Retirement Annuity contract and only that contract. If you commence income payments after April 1 st of the year following the year in which you reach age 70½, then your income annuity payments may not satisfy your required minimum distribution for the calendar year income payments commence. Please consult with your own personal tax advisor.

4 By rolling your qualified plan or IRA money into a MetLife Income Annuity contract, you can: Receive a potentially greater amount of income than you would receive from typical RMD guidelines for defined contribution plans and IRAs (including deferred Individual Retirement Annuity contracts), while satisfying your annual distribution requirements. Receive guaranteed income for the rest of your life, or spread payments over two lifetimes using the Joint Life option. 3 Eliminate the need to complete annual RMD withdrawal paperwork. What is a Required Minimum Distribution? Any individual who invests in a tax-deferred retirement plan, like an Individual Retirement Arrangement (IRA), must generally begin taking withdrawals once they reach age 70½. Those withdrawals are called Required Minimum Distributions or RMDs. RMDs may be difficult to keep track of, especially if you have more than one account that is subject to the RMD requirement. In general, the amount you must withdraw will be different each year, and if you don t take enough, there s a 50% Federal tax penalty on the amount you should have taken. 3 if the designated beneficiary is more than 10 years younger than the IRA owner and is not the IRA owner s spouse, the annuity payments may be reduced after the death of the IRA owner.

5 About the MetLife Income Annuity With a MetLife Income Annuity, you: can use a portion of your assets to secure stable, predictable income for life without market risk select the income payment option that is right for you choose payment options that can help you maximize your income, receive increasing income over time or ensure you will always get back what you put in have the flexibility to access a portion of your future income if an unexpected need arises with the Early Access Option 4 can automatically deposit your payments directly into a checking or savings account Why MetLife For over 140 years, MetLife 5 has been insuring the lives of the people who depend on us. Our success is based on our long history of social responsibility, strong leadership, sound investments, and innovative products and services. 6 MetLife meets the challenges of today by drawing upon a long history of success. Began our operations in 1868 Paid claims and cash surrenders throughout the Great Depression 7 Made the largest cash contribution of any single investor in World War II 8 Paid claims in as soon as three days after September 11, 2001 and invested $1 billion into the U.S. economy 9 Identified the housing bubble early and reduced our exposure to sub-prime mortgage-backed securities before the financial crisis 10 Raised approximately $2.3 billion in a common stock offering during the financial crisis and did not participate in the Troubled Asset Relief Program (TARP) 11 Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer s claims-paying ability and financial strength. 4 For IRAs and tax-qualified retirement plans subject to the required minimum distribution rules, it is unclear whether the restoration of the original payment stream (plus any increase due to the Increasing Income Option, if applicable) after the reduction in payments during the Liquidity Period is permitted under the required minimum distribution rules. Consult your tax advisor prior to the purchase of an income annuity providing the Early Access Option in the IRA and other tax-qualified markets. 5 Metropolitan Life Insurance Company and its affiliates 6 Corporate Profile, MetLife History 7 Supporting Country and Community 8 MetLife Publication, 1946: About Our Work in 45 9 Robert H. Benmosche, MetLife, Inc. Chairman & CEO, July 1998 to March 2006, Public Statement 9/14/ Corporate Profile, Governance, Executive Officers, Steven A. Kandarian 11 April 13, 2009, MetLife Opts to Forgo TARP Cash

6 MetLife Fixed Income Annuities, like all annuities, are insurance products and are not insured by the FDIC, the NCUSIF or any other government agency, nor are they guaranteed by, or the obligation of, the financial institution that sells them. All MetLife Fixed Income Annuity product guarantees are made solely by the issuing insurance company and are subject to the issuing insurance company s claims-paying ability and financial strength. Like most annuity contracts, MetLife Fixed Income Annuities have limitations, exclusions, termination provisions and terms for keeping them in force. All contract guarantees and annuity payout rates are backed by the claims-paying ability and financial strength of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased or any affiliates of those entities and none makes any representations or guarantees regarding the claims-paying ability and financial strength of the issuing insurance company. Similarly, the issuing insurance company does not back the financial strength of the broker/dealer or any of its affiliates. Please contact your financial professional for complete details. The taxable amounts of your income payments are subject to ordinary income tax and if made before age 59½, may be subject to a 10% Federal income tax penalty. Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products. You should seek advice based on your particular circumstances from an independent tax advisor. MetLife, its agents, and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult with and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances. The Single Premium Immediate Annuity is issued by MetLife Investors USA Insurance Company; 5 Park Plaza, Suite 1900, Irvine, CA on Policy Form Series MLIU-SPIA (07/06) and in New York, only by First MetLife Investors Insurance Company; 200 Park Avenue, New York, NY on Policy Form Series FMLI-SPIA (07/06) and the MAX Income Single Premium Immediate Annuity is issued by Metropolitan Life Insurance Company; 200 Park Avenue, New York, NY on Policy Form No. ML-SPIA (07/06) (referred to collectively and singly as MetLife). July 2012 Not A Deposit Not FDIC-Insured Not Insured By Any Federal Government Agency Not Guaranteed By Any Bank Or Credit Union May Go Down In Value 2012 MetLife, INC. PEANUTS 2012 Peanuts Worldwide CLFA8057 L [0813]