Non Qualified Assignment (NQA) for Structured Settlements
Provide your claimants with a tax-advantaged solution that turns their settlement into a guaranteed stream of income, protected from market volatility.
What is our Tax-Advantaged Settlement Solution?
Our Non-Qualified Assignment (NQA) solution can help claimants keep more of their settlement by spreading the taxes owed across a series of payments, thereby avoiding an immediate and potentially significant tax liability upon receipt of the settlement proceeds.3 This solution is intended for claims or disputes that fall outside of personal physical injury defined under IRC Section 104(a)(2), as well as those that are not eligible for an IRC Section 130 qualified assignment. MetLife offers an immediate payment option through the traditional Non-Qualified Assignment and a deferred payment option through the Non-Qualified Assignment Flex Agreement (NQA-FA).1 The NQA, is the first solution of its kind to utilize a U.S.-based assignment company and, is offered by Metropolitan Tower Life Insurance Company (MTL),a wholly owned operating subsidiary of MetLife, Inc.2
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What are the benefits of a traditional NQA and an NQA Flex Agreement?
Tax Benefits3
By spreading out payments over time, taxes are deferred and can potentially be reduced.
Strength4
Backed by a trusted provider with strong financial strength ratings, giving confidence that long-term payment obligations are supported by a financially sound company.
Flexibility
Tailor payment start dates to meet individual needs.
FAQs
A Non-Qualified Assignment can be used in a wide variety of case types that fall outside of personal injury, including the structuring of attorney contingency fees3. The following list represents some common uses but is not limited to:
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Amounts attributable to wages that are subject to W2 reporting (FICA/FUDA withholding) are ineligible for a Non-Qualified Assignment. Additional factors may also be deemed ineligible, though other case types may not qualify. Reach out to a member of the Sales Team to confirm.
Periodic payments can be made to the individual or the entity that is named as a party to the settlement of the underlying claim or dispute. Payees may include a Trust, businesses, or corporations but home office approval is required.
Yes, the traditional NQA permits life-contingent periodic payments; the maximum issue age is 85. Life-contingent payments cease at the time of death. Life-contingent payments are not permitted on the NQA-FA. Any remaining unpaid guaranteed payments continue to either the named beneficiary or the estate. If elected at the time of settlement, payments may be commuted upon death for the traditional NQA or follow the accelerated benefit event for the NQA-FA.1,2
No.
Traditional NQA periodic payments must begin immediately, typically within one year of the purchase date. Periodic payments must be substantially equal, paid out in regularly scheduled intervals, and occur no less frequently than annually.
The NQA-FA offers flexible payment start dates, including payments starting beyond one year from purchase, lump sum payments, and customized payment designs.1
Metropolitan Tower Life Insurance Company will send a 1099-Misc for reporting.
The defendant/carrier can transfer all future obligations related to the periodic payments to MetLife and avoid the potential of a costly trial. In certain cases, they can also realize the full settlement deduction for applicable damages.
Our Advantage
Proven Industry Leadership
More than 40 years of consistent market leadership and #1 in sales in the structured settlements industry.5
Financial Strength & Stability
Our financial strength ratings are among the highest in the industry, which helps ensure long-term payment security.4
Customized, Flexible Solutions
Trusted Expertise and Guidance
Experts delivering clear, compassionate guidance and industry leadership.
Solutions-Focused Partnership
Streamlined processes, innovative tools, and collaborative support that help make every step of the process easier.
Commitment to Claimant Well-Being
Products designed to support claimants’ long-term needs while delivering consistent, reliable income for the future.
Meet The Team
When you partner with us, you are choosing a leader who will be with you every step of the way and can provide claimants with a steady and reliable income stream — both now and in the future.