Accessing Funds from an MYG Annuity: What You Need to Know
Jun 17, 2025
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.
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 Additionally, federal income tax will be due on any gains withdrawn.
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Withdrawals from an MYG Annuity are also subject to federal tax rules and could incur a penalty if withdrawn early.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).
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:
- Withdraw all your money without penalty.
- 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.
- 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.
Multi-Year Guarantee Annuities from American National Insurance Company are built for simplicity. Everything from the secure online purchasing experience to the straightforward terms make it easier for today's retirement planners to navigate life's changes and maintain control over their financial future. If you're looking for ways to put guaranteed growth in your hands, then an MYG Annuity might be right for you.