How to Complete and Submit the Security Benefit Outgoing Funds Request Form

To take money out of a Security Benefit annuity or retirement account, you complete the Security Benefit Outgoing Funds Request Form, choose whether you want a lump sum, a partial withdrawal, or recurring payments, make your tax withholding elections, sign it (with any required co-signers), and mail it to the processing center that handles your product. You can download the form from securitybenefit.com under the Service Forms page, or call the annuity service line at 800-888-2461, Monday through Friday, 8 a.m. to 7 p.m. Eastern, to have one sent to you.1Security Benefit. Contact Us If you hold a retirement plan account, you can also model and start a withdrawal online after signing in and opening the Loans & Withdrawals tab.2Security Benefit. Frequently Asked Questions

Filling In Your Identifying Information

The top of the form matches your request to your contract. You need your full legal name as it appears on the original policy, your Social Security Number or Taxpayer Identification Number, your contract or account number, a current mailing address, and a daytime phone number. The contract number is on your quarterly statements and on your original policy documents.

If the name or SSN you write doesn’t match what Security Benefit has on file, the request goes into a security hold. Clearing it usually means sending in a copy of a government-issued photo ID and sometimes a utility bill to verify your address, and that adds days or weeks.

Choosing a Distribution Type

The distribution section tells Security Benefit how much to pull and whether to keep the contract open. The main choices are:

  • Full surrender, which liquidates the entire contract value and closes the account.
  • Partial withdrawal, which takes out a specific dollar amount or percentage and keeps the contract active.
  • Systematic distribution, which sets up recurring payments monthly, quarterly, or annually.
  • Required Minimum Distribution, calculated to satisfy IRS rules for qualified accounts.

If you have an outstanding loan against the account, Security Benefit requires the loan to be repaid in full before it will process a full surrender.3Security Benefit. Custodial Account Outgoing Funds Request

Check Your Free Withdrawal Allowance Before Entering a Dollar Amount

Most Security Benefit annuity contracts carry a surrender charge during the early years of the policy that declines over time, and the exact schedule depends on which product you own and the guarantee period you selected. Many contracts also include a free withdrawal provision that lets you take out a set percentage of the account each year without triggering the charge. On the TopRidge Bonus Annuity, for example, you can withdraw up to 10% of total purchase payments (excluding any bonus credits) starting in the first contract year without a surrender charge or Market Value Adjustment.4Security Benefit. TopRidge Bonus Annuity Check your specific contract brochure, or call Security Benefit, to confirm your free withdrawal amount before you write a figure on the form. A partial withdrawal that creeps above that line can cost you several percent of the overage.

Tax Withholding Elections

Every distribution from an annuity has tax consequences, and the form asks you to make several withholding choices before Security Benefit sends the money.

For one-time or irregular withdrawals, which the IRS calls nonperiodic distributions, federal law requires the payer to withhold 10% of the distribution amount. You can opt out of this withholding on a distribution-by-distribution basis by checking the box on the form.5Office of the Law Revision Counsel. 26 USC 3405 – Special Rules for Pensions, Annuities, and Certain Other Deferred Income Opting out doesn’t lower the tax you owe. It just pushes the whole bill to the day you file, and the IRS can charge an underpayment penalty if you haven’t made estimated payments.

The form also asks about state income tax withholding, and rules vary. Some states require mandatory withholding you cannot waive; others let you choose a dollar amount or opt out. If your state has an income tax, enter the amount or percentage the form requests.

Gross vs. Net Payment

One line on the form trips people up: whether you want a gross or net distribution. If you pick gross, Security Benefit pays you the amount you requested and subtracts taxes from it. Ask for $50,000 gross and you may receive around $45,000 after the 10% federal withholding. If you pick net, Security Benefit adds the withholding on top so you receive the exact dollar amount you asked for, but the total pulled from your contract is higher. That larger total could push you past your free withdrawal allowance and trigger surrender charges, so run the numbers before you select net.

Signatures, Guarantees, and Attachments

Security Benefit will not process the form without the right signatures, and depending on the size of the withdrawal and the type of account, you may need more than your own.

Medallion Signature Guarantee

For larger withdrawals, or when funds are being sent to a bank account that isn’t already on file, Security Benefit may require a Medallion Signature Guarantee. This is a specialized stamp a participating bank, credit union, or broker-dealer places on your form after verifying your identity. It carries a surety bond that protects against forged signatures, and that makes it more rigorous than a standard notarization.6Investor.gov. Medallion Signature Guarantees: Preventing the Unauthorized Transfer of Securities Not every bank branch offers Medallion guarantees, so call ahead. The service is usually free for existing customers of the guaranteeing institution.

Spousal Consent for Qualified Plans

If your annuity sits inside a qualified retirement plan subject to joint and survivor annuity rules, your spouse must consent in writing before Security Benefit can release funds. Under federal law, the spouse’s signature must be witnessed by either a plan representative or a notary public, and the consent must acknowledge the effect of the election.7Office of the Law Revision Counsel. 26 USC 417 – Definitions and Special Rules for Purposes of Minimum Survivor Annuity Requirements Not every plan requires spousal consent for every distribution; most 401(k) and profit-sharing plans that meet certain conditions are exempt. If the spousal consent section is on your version of the form, don’t skip it. A missing spouse signature is one of the most common reasons these requests get kicked back.

Supporting Documents for Special Situations

Some circumstances require paperwork attached to the form:

  • Death of the contract owner: a certified death certificate and, if applicable, documentation establishing the beneficiary’s claim.
  • Divorce or QDRO: a certified copy of the Qualified Domestic Relations Order directing the division of the account.
  • Change of ownership: a marriage certificate or court order supporting the transfer.

Missing an attachment produces a Not in Good Order notice that identifies what’s missing but resets the processing clock once you resubmit.

Where to Send the Completed Form

Security Benefit uses different mailing addresses depending on whether you hold an annuity contract or a retirement plan account. For annuity products:1Security Benefit. Contact Us

  • Standard mail: Security Benefit, P.O. Box 750497, Topeka, KS 66675-0497
  • Overnight delivery: Security Benefit, Mail Zone 497, One SW Security Benefit Place, Topeka, KS 66636-0001

For retirement plan accounts serviced through Security Benefit Retirement Plan Services:8Security Benefit. Service Forms

  • Standard mail: Security Benefit Retirement Plan Services, PO Box 219141, Kansas City, MO 64121-9141
  • Overnight delivery: Security Benefit Retirement Plan Services, 801 Pennsylvania Ave Ste 219141, Kansas City, MO 64105-1307

Sending the form to the wrong processing center is an easy mistake. Check the instructional page attached to your specific form version to confirm which address applies, or call 800-888-2461 for annuity contracts or 800-747-3942 for retirement plan accounts before mailing.2Security Benefit. Frequently Asked Questions

What Happens After You Submit

Once Security Benefit receives a complete, properly signed form, expect roughly five to ten business days for review and payment. If anything is missing or doesn’t match, you’ll get a Not in Good Order notice listing the specific deficiencies. The fix-and-resubmit cycle easily adds another two weeks, which is why getting signatures, attachments, and account details right the first time matters.

When the distribution is approved, Security Benefit typically sends payment by check to your mailing address or by electronic transfer to a bank account you’ve designated. If you want funds sent by ACH or wire, you may need to have already filed a separate Electronic Bank Information form with Security Benefit linking that account. Adding a new bank account at the same time as a large withdrawal is one of the triggers for the Medallion Signature Guarantee requirement.

If You’re Under 59½

If you’re younger than 59½ and take money out of a qualified annuity or retirement account, the IRS imposes a 10% additional tax on the taxable portion of the distribution, on top of the ordinary income tax you already owe.9Internal Revenue Service. Substantially Equal Periodic Payments This penalty reaches IRAs, 403(b) annuities, 401(a) plans, and similar qualified arrangements.

Several exceptions can eliminate the 10% penalty, though you still owe regular income tax on the distribution. The most commonly used include:10Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions

  • Separation from service after age 55, if you left the employer sponsoring the plan during or after the year you turned 55 (age 50 for public safety employees).
  • Substantially equal periodic payments taken at least annually over your life expectancy. Once started, you must continue for five years or until you reach 59½, whichever is longer.
  • Total and permanent disability.
  • Distributions to a beneficiary after the account holder’s death.
  • Unreimbursed medical expenses exceeding 7.5% of your adjusted gross income.
  • Distributions from an employer plan directed by a Qualified Domestic Relations Order in a divorce.
  • Qualified disaster distributions up to $22,000 for federally declared disasters.

Non-qualified annuities purchased with after-tax dollars outside a retirement plan follow slightly different rules. The 10% penalty under Section 72(q) still applies to the earnings portion withdrawn before 59½, but the return of your original premium is not penalized or taxed.

A Note on Required Minimum Distributions

If your Security Benefit annuity is in a qualified account like a traditional IRA or 403(b), the IRS eventually requires annual withdrawals. Under SECURE Act 2.0, RMDs begin at age 73 if you were born between 1951 and 1959, and at age 75 if you were born in 1960 or later.

Security Benefit does not automatically calculate or send RMDs. Requesting them is your responsibility, and Security Benefit offers a separate RMD form for this purpose, downloadable from the Service Forms page.11Security Benefit. Required Minimum Distribution (RMD) for Annuity Contract Don’t use the Outgoing Funds Request Form as a substitute. Missing an RMD deadline carries a steep IRS excise tax on the amount you should have withdrawn.