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Accessing Funds from an MYG Annuity: What You Need to Know

Jun 17, 2025

Article Summary:

This article explains how and when you can access funds from a Multi‑Year Guarantee (MYG) Annuity. It covers options like penalty‑free withdrawals, situations where additional access may be available, and what happens when the guarantee period ends—helping you understand how MYG Annuities balance guaranteed growth with flexibility as your financial needs change.

Multi-Year Guaranteed Annuities (MYG Annuities) from American National Insurance Company offer a secure and predictable way to grow your money over time. But as with any insurance or financial product, it's important to understand how and when you can access your funds. While MYG Annuities aren't designed for high liquidity, they do offer guaranteed rates that are typically higher than a CD or money market account.

 

Here's a breakdown of what to consider when it comes to accessing money from an MYG Annuity:

Access During the Guarantee Period

The guarantee period is the length of time your MYG Annuity locks in its interest rate. American National Insurance Company offers MYG Annuities direct online with guarantee periods that range from 3 to 7 years. During this time, your access to funds is limited but not entirely restricted.

Access During the Guarantee Period

The guarantee period is the length of time your MYG Annuity locks in its interest rate. American National Insurance Company offers MYG Annuities direct online with guarantee periods that range from 3 to 7 years. During this time, your access to funds is limited but not entirely restricted.

Penalty-Free Withdrawals

As with most annuities, you can withdraw up to 10% of the value of your American National Insurance Company MYG Annuity each year without incurring surrender charges1.  This provision is based on the annuity value on the contract anniversary date and helps retirement planners strike a balance between long-term growth and short-term flexibility—ideal for those who want or may need occasional income, while keeping the bulk of their funds invested and growing.

Penalty-Free Withdrawals

As with most annuities, you can withdraw up to 10% of the value of your American National Insurance Company MYG Annuity each year without incurring surrender charges1.  This provision is based on the annuity value on the contract anniversary date and helps retirement planners strike a balance between long-term growth and short-term flexibility—ideal for those who want or may need occasional income, while keeping the bulk of their funds invested and growing.

Withdrawals Over 10%

If you need to withdraw more than 10% of your annuity's value in a given year during the guarantee period, surrender chargers may apply2. These fees vary by contract and typically decrease over time based on your contract terms. Additionally, federal income tax will be due on any gains withdrawn.

Withdrawals Over 10%

If you need to withdraw more than 10% of your annuity's value in a given year during the guarantee period, surrender chargers may apply2. These fees vary by contract and typically decrease over time based on your contract terms. Additionally, federal income tax will be due on any gains withdrawn.

Additional Flexibility

An MYG Annuity from American National Insurance Company offers a minimum withdrawal of just $100, giving you control over how and when you receive funds. Withdrawals can be adjusted or stopped at any time with a written request. Funds may be paid out on a schedule that suits your needs whether that be monthly, quarterly, semi-annually, or annually. Additionally, you have the option to have your funds directly deposited into your bank account. 

Additional Flexibility

An MYG Annuity from American National Insurance Company offers a minimum withdrawal of just $100, giving you control over how and when you receive funds. Withdrawals can be adjusted or stopped at any time with a written request. Funds may be paid out on a schedule that suits your needs whether that be monthly, quarterly, semi-annually, or annually. Additionally, you have the option to have your funds directly deposited into your bank account. 

Age-Related Considerations

Withdrawals from an MYG Annuity are also subject to federal tax rules and could incur a penalty if withdrawn early. If you're younger than 59 1/2, it's important to know that early withdrawals from an MYG Annuity may trigger a 10% IRS penalty—on top of ordinary income tax3. This is similar to taking money out early from a traditional IRA or 401(k).

Age-Related Considerations

Withdrawals from an MYG Annuity are also subject to federal tax rules and could incur a penalty if withdrawn early. If you're younger than 59 1/2, it's important to know that early withdrawals from an MYG Annuity may trigger a 10% IRS penalty—on top of ordinary income tax3. This is similar to taking money out early from a traditional IRA or 401(k).

Special Circumstances That May Allow Additional Access

Some contracts allow additional withdrawals without penalty for unexpected health events in your life. An MYG Annuity from American National Insurance Company provides a Confinement Waiver, Terminal Illness Waiver, and a Disability Waiver that allows you to have access to your money without any surrender charges, any applicable market value adjustments, or excess interest deduction2.

Special Circumstances That May Allow Additional Access

Some contracts allow additional withdrawals without penalty for unexpected health events in your life. An MYG Annuity from American National Insurance Company provides a Confinement Waiver, Terminal Illness Waiver, and a Disability Waiver that allows you to have access to your money without any surrender charges, any applicable market value adjustments, or excess interest deduction2.

Access After the Guarantee Period


When the guarantee period ends, you'll enter an important decision-making window, typically a 30-day period, where you have full access to your funds without any surrender charges.

At this point, you can: 

  1. Withdraw all your money without penalty. 
  2. Continue the annuity and earn an annual effective interest rate declared annually on the policy anniversary. Your funds will remain tax-deferred, meaning you won't owe taxes on the interest until you take withdrawals.
  3. Annuitize the contract, converting it into a guaranteed stream of income for life or a set number of years. 

Only annuities offer this conversion feature to a steady stream of income, which can be a valuable option for those seeking long-term retirement income.

 

Post-Guarantee Strategy Considerations


Once the initial term ends, it's a good time to reassess your financial goals. Ask yourself:

  • Do you need more liquidity moving forward?
  • Are you interested in locking in another guaranteed rate?
  • Would you benefit from a steady income stream?

This is the moment to appraise your situation and decide whether to reinvest, take the cash, or convert your MYG Annuity into income.

1. Penalty-free withdrawals allow up to 10% of the annuity value at the beginning of the year to be withdrawn annually, free of surrender charges. Any withdrawals, including interest-only withdrawals, will reduce the amount of interest credited to your contact. Withdrawals of earnings are subjected to income tax. A 10% IRS penalty may be imposed for withdrawals before 59 1/2. 

2. Surrender charges may apply if withdrawals exceed the annual penalty-free withdrawal limit. Waivers for Confinement, Terminal Illness, and Disability may allow access to money without any surrender charges, any applicable market value adjustments, or excess interest deduction, terminal and confinement waivers are not available in California. 

3. Information herein is not intended to be legal or tax advice. You should consult with your own attorney and tax advisor for your specific circumstance. Current U.S. tax law provides that earnings from an annuity are taxable only upon withdrawal as ordinary income. Any withdrawals in excess of the surrender free amount are subject to surrender charges or market value adjustments. 

American National Insurance Company, headquartered in Galveston, Texas is licensed to conduct business in all states except New York. 

Not FDIC/NCUA insured / Not a deposit / Not insured by any federal government agency / No bank/CU guarantee