Today's Best Multi-Year Guaranteed Annuities

Scan today's lists of the best Multi-year Guaranteed Annuities (updated Monday, 2015-07-06). These lists are sorted by the surrender fee period. We revise these lists daily and there are frequent changes. Please bookmark this page and come back to it often.

+Click To Read Our Tutorial On Multi-Year Guaranteed Annuities

Q. What is a multi-year guaranteed annuity (MYGA)?

A. A multi-year guaranteed annuity is a single-premium fixed rate deferred annuity. It’s a contract between you and an insurance company. You make one lump-sum investment, decide when you want it to pay out. You’ll already know how much money you’ll receive, and when.

A MYGA, also called a fixed deferred annuity, might be a good tool for money you don’t need to spend right away, so you get more money later. They’re offered for terms lasting from 3 to 10 years.

You’ll also enjoy tax advantages that bank accounts and CDs don’t offer.

Q. Will I be charged a penalty if I withdraw my entire policy early? What if I find a better deal for the money I’ve invested in my MYGA?

A. Yes. The earlier in the annuity period, the higher the penalty percentage, referred to as surrender fees. That’s one reason why it’s best to stick with the annuity, once you commit to it.

However, depending on your contract, you might be able to make limited penalty-free withdrawals from your MYGA. Usually they allow you to withdraw up to 10% of your initial investment or account value every year. With CDs, you’re at risk for substantial penalties for any early withdrawal—usually, a higher percentage than MYGA surrender fees.

You can pull out everything to reinvest it, but before you do, make sure that you’ll still come out on top that way, even after you figure in the surrender fee.

Q. Am I able to access my money in the case of an emergency?

A. With some MYGAs, you can make early withdrawals for emergencies, such as health expenses for a serious illness, or confinement to a nursing home. Early withdrawal terms in MYGAs vary a great deal, so make sure you understand what you can and cannot do before you settle on a particular annuity. Once you do, it’s best to see it through to the end.

Q. How do MYGA rates compare to CD rates?

A. Usually, MYGAs offer higher interest rates than CDs, and compound interest increases the difference. However, comparison shopping is always a good idea.

Q. CDs are insured by the FDIC. Are MYGAs also insured?

A. It’s true that CDs are insured by the FDIC. However, MYGAs are insured by the individual states — usually, in the range of $100,000 to $500,000. It’s a good idea to research your state guaranty association before you invest.

Q. What are my choices at the end of the annuity surrender charge period?

A. You have several options. Either you take your money in a lump sum, reinvest it in another annuity, or you can annuitize your contract, converting the lump sum into a stream of income. By annuitizing, you will only pay taxes on the interest you receive in each payment.

In most cases, you have 30 days to inform the insurance company of your intentions. If you don’t give any instructions to the insurance company then the annuity will automatically renew at the interest rate available at that time.

If you decide to take a lump sum, keep in mind that you may be pushed into a higher tax bracket in the year that you receive it.

Q. What are the advantages of purchasing a MYGA?

A. There are several advantages.

1. A MYGA can mean lower taxes than a CD. With a CD, the interest you earn is taxable when you earn it, even though you don’t receive it until the CD matures. With a MYGA, you don’t owe taxes until the end of the annuity period. So at the very least, you pay taxes later, rather than sooner. Not only that, but the compounding interest will be based on an amount that has not already been taxed.

2. Your beneficiaries will receive the full account value as of the date you die—and no surrender charges will be deducted. The beneficiaries are the people you name when you establish the annuity who will receive the money if you die before the annuity is scheduled to pay. Your beneficiaries can choose either to receive the payout in a lump sum, or in a series of income payments.

3. Often, when someone dies, even if he left a will, a judge decides who gets what from the estate as sometimes relatives will argue about what the will means. That’s called probate. It can be a long, complicated, and very expensive process. People go to great lengths to avoid it. But with a multi-year fixed annuity, the owner has clearly designated a beneficiary, so no probate is required. The money goes directly to the beneficiary, no questions asked.

Q. How is this any better than just making a contribution to an IRA?

A. If you contribute to an IRA or a 401(k) plan, you receive tax deferral on the earnings, just like a MYG

A. However, there is no contribution limit for MYGAs, whereas Annual contribution amounts to IRAs and 401(k)s are capped by law.

Q. What kind of person does a MYGA suit best? What kind of person is NOT right for a MYGA?

A. Usually, MYGAs suit retirees or people nearing retirement. That’s because the IRS imposes a 10% penalty on gains you withdraw from your MYGA if the owner is under age 59 1/2. This penalty applies only to the gains—not the initial investment amount. That penalty does not apply on withdrawals if the owner is at least 59 1/2. However, the maximum age for purchasing a MYGA is often 80-85 years.

So if you are younger, invest only the funds you will not need until after age 59 1/2. These could be 401(k) rollovers or money you hold in IRA accounts. But those products already offer tax deferral.

MYGAs are great for people who want to avoid the risks of market fluctuations, and want a fixed return and tax deferral. If your time horizon extends at least three years, then you are a candidate for a MYGA, especially if tax deferral is an important feature to you.

They might be less suitable for younger people; people who may need or want the money sooner; and people who would rather take bigger risks, in hope of getting bigger returns.

Q. If I buy an MYGA, is my money safe? How do I know what interest rate I will get? What are the risks?

A. When you buy an annuity from a high-quality insurance company, your investment is safe, and so is your return. In fact, with a MYGA, your biggest risk is that the insurance company you buy from might fail. So it’s especially critical that you choose a stable provider. Our website lists the most up-to-date information from credit rating agencies on the soundness of the insurance companies who offer annuities.

Also, your state insures up to a certain limit. If you want to invest more than the state-insured limit, and you are concerned about the risks, you can divide your initial payment among multiple insurers, setting up separate annuities and spreading the risk.

As for the interest rate, we offer a comprehensive selection of contracts from many insurance companies, with different terms and interest rates. When you decide on one, the interest rate will be fixed and guaranteed for the term you select.

Q. What does the insurer do with my money?

A. The insurer invests it, usually in high quality long-term bonds, to fund your future payments under the annuity. That’s because bonds are quite safe. But they can also invest in stocks. Remember, the insurer is relying not just on your individual payment to fund your annuity. Insurance companies have very large, professionally managed, diversified portfolios that represent premiums from many customers who have bought all kinds of insurance products from them. The insurance company pools those premiums. If the company is on solid footing, any loss in their portfolio will not affect your payments. On the other hand, if the insurer invests very successfully, you won’t share in any of that gain. Your payments are fixed.

Q. What’s the least and the most I can invest? What does it cost me?

A. MYGAs require you to invest from as little as $2,500 to as much as $1 million or more. Sales agents usually receive commissions of 1% to 3% on MYGAs, much lower than some other kinds of annuities. These commissions are built into the purchase price, so there are no hidden fees in the MYGA contract. There are no sales charges or maintenance fees, either.

Q. Can MYGAs be part of a larger strategy?

A. Sure. In the recent environment of low interest rates, some MYGA investors build “ladders.” That means buying multiple annuities with staggered terms. This way, they come due at regular intervals and the proceeds can be reinvested in the hope of catching an upswing in interest rates. For example, if you opened MYGAs of 3-, 4-, 5- and 6-year terms, you would have an account maturing annually after three years. At the end of the term, your money could be withdrawn or put into a new annuity--with luck, at a higher rate.

You can also use MYGAs in ladders with fixed-indexed annuities, a strategy that seeks to maximize yield while also protecting principal. Of course, this strategy requires a fair amount of free cash.

And, of course, within your portfolio, you can include MYGAs together with stock and bond mutual funds, CDs, and other types of investments. MYGAs can be a very helpful element of your overall retirement planning.

Q. What else do I need to know about MYGAs?

A. Think carefully about the term. During periods of low interest rates, some investors opt for shorter terms, in hopes that they can renew at a higher rates. If interest rates have risen, you may want to lock them in for a longer term.

Q. Suppose I do go through with it—but then, I realize it was a mistake?

A. Most state laws allow you at least 10 days to change your mind. This is called a "free look" period. During this time, you can get all of your money back. This should be prominently stated in your contract. Be sure to read it carefully during this period, if you have not already done so.

For expert help with multi-year guaranteed annuities call 800-872-6684 or click a 'Get My Quote' button next to any annuity in these lists.

OUR HIGHEST MULTI-YEAR DEFERRED ANNUITY RATES

July 5, 2015
Click Product Name
for more Information
Surrender
Fee Period
Minimum Premium Annual
Rate
AM Best
Rating
Click to
Sentinel Security Life
Personal Choice Annuity 10
10 yrs.$2,5003.40 %B++
Oxford Life
Multi-Select 9 Annuity
9 yrs.$20,0003.15 %A-
Oxford Life
Multi-Select 8 Annuity
8 yrs.$20,0003.10 %A-
Oxford Life
Multi-Select 7 Annuity
7 yrs.$20,0003.05 %A-
American National
Palladium MYG Annuity 6
6 yrs.$100,0002.80 %A
Sentinel Security Life
Personal Choice Annuity 5
5 yrs.$2,5003.10 %B++
Oxford Life
Multi-Select 4 Annuity
4 yrs.$20,0002.05 %A-

MULTI-YEAR DEFERRED ANNUITY RATES (in order of Surrender Period)

July 5, 2015
Click Product Name
for more Information
Surrender
Fee Period
Minimum Premium Annual
Rate
AM Best
Rating
Click to
Sentinel Security Life
Personal Choice Annuity 10
10 yrs.$2,5003.40 %B++
Guggenheim Life and Annuity
Preserve MYGA 10 Annuity High-Band (MVA)
10 yrs.$249,9993.30 %B++
Delaware Life
Pinnacle MYGA℠ 10 Annuity Year (MVA)
10 yrs.$10,0003.25 %A-
Oxford Life
Multi-Select 10 Annuity (MVA)
10 yrs.$20,0003.25 %A-
Guggenheim Life and Annuity
Preserve MYGA 10 Annuity Low-Band (MVA)
10 yrs.$10,0003.20 %B++
Midland National Life
Guarantee Ultimate 10 Annuity High-Band (MVA)
10 yrs.$200,0003.10 %A+
North American
Guarantee Choice 10 Annuity High-Band (MVA)
10 yrs.$200,0003.10 %A+
EquiTrust Life
Certainty Select 10 Annuity (MVA)
10 yrs.$10,0003.00 %B++
American General Life
American Pathway SolutionsMYG 10 Annuity High-Band (MVA)
10 yrs.$100,0002.85 %A
Midland National Life
Guarantee Ultimate 10 Annuity Low-Band (MVA)
10 yrs.$10,0002.85 %A+
North American
Guarantee Choice 10 Annuity Low-Band (MVA)
10 yrs.$10,0002.85 %A+
American National
Palladium MYG Annuity 10 High-Band (MVA)
10 yrs.$100,0002.85 %A
Pacific Life
Pacific Frontiers II 10 Annuity (MVA)
10 yrs.$10,0002.80 %A+
American National
Palladium MYG Annuity 10 Low-Band (MVA)
10 yrs.$5,0002.75 %A
American General Life
American Pathway SolutionsMYG 10 Annuity Low-Band (MVA)
10 yrs.$10,0002.70 %A
Integrity Life
MultiVantage 10 Annuity (MVA)
10 yrs.$20,0002.60 %A+
National Integrity Life
MultiVantage 10 Annuity (MVA)
10 yrs.$20,0002.45 %A+
VOYA and Annuity
Guarantee Choice 10 Annuity High-Band (MVA)
10 yrs.$75,0001.60 %A
VOYA and Annuity
Guarantee Choice 10 Annuity Low-Band (MVA)
10 yrs.$15,0001.50 %A
Oxford Life
Multi-Select 9 Annuity (MVA)
9 yrs.$20,0003.15 %A-
Guggenheim Life and Annuity
Preserve MYGA 9 Annuity High-Band (MVA)
9 yrs.$249,9993.10 %B++
Guggenheim Life and Annuity
Preserve MYGA 9 Annuity Low-Band (MVA)
9 yrs.$10,0003.00 %B++
Midland National Life
Guarantee Ultimate 9 Annuity High-Band (MVA)
9 yrs.$200,0003.00 %A+
North American
Guarantee Choice 9 Annuity High-Band (MVA)
9 yrs.$200,0003.00 %A+
American National
Palladium MYG Annuity 9 High-Band (MVA)
9 yrs.$100,0002.92 %A
American National
Palladium MYG Annuity 9 Low-Band (MVA)
9 yrs.$5,0002.82 %A
Midland National Life
Guarantee Ultimate 9 Annuity Low-Band (MVA)
9 yrs.$10,0002.80 %A+
Minnesota Life
SecureOption Select 9 Annuity High-Band (MVA)
9 yrs.$100,0002.80 %A+
North American
Guarantee Choice 9 Annuity Low-Band (MVA)
9 yrs.$10,0002.80 %A+
American General Life
American Pathway SolutionsMYG 9 Annuity High-Band (MVA)
9 yrs.$100,0002.75 %A
Pacific Life
Pacific Frontiers II 9 Annuity (MVA)
9 yrs.$10,0002.70 %A+
American General Life
American Pathway SolutionsMYG 9 Annuity Low-Band (MVA)
9 yrs.$10,0002.60 %A
Minnesota Life
SecureOption Select 9 Annuity Low-Band (MVA)
9 yrs.$5,0002.60 %A+
Oxford Life
Multi-Select 8 Annuity (MVA)
8 yrs.$20,0003.10 %A-
Guggenheim Life and Annuity
Preserve MYGA 8 Annuity High-Band (MVA)
8 yrs.$249,9993.00 %B++
American National
Palladium MYG Annuity 8 High-Band (MVA)
8 yrs.$100,0002.95 %A
Guggenheim Life and Annuity
Preserve MYGA 8 Annuity Low-Band (MVA)
8 yrs.$10,0002.90 %B++
Midland National Life
Guarantee Ultimate 8 Annuity High-Band (MVA)
8 yrs.$200,0002.90 %A+
North American
Guarantee Choice 8 Annuity High-Band (MVA)
8 yrs.$200,0002.90 %A+
American National
Palladium MYG Annuity 8 Low-Band (MVA)
8 yrs.$5,0002.85 %A
EquiTrust Life
Certainty Select 8 Annuity (MVA)
8 yrs.$10,0002.85 %B++
American General Life
American Pathway SolutionsMYG 8 Annuity High-Band (MVA)
8 yrs.$100,0002.65 %A
Midland National Life
Guarantee Ultimate 8 Annuity Low-Band (MVA)
8 yrs.$10,0002.65 %A+
North American
Guarantee Choice 8 Annuity Low-Band (MVA)
8 yrs.$10,0002.65 %A+
Pacific Life
Pacific Frontiers II 8 Annuity (MVA)
8 yrs.$10,0002.60 %A+
American General Life
American Pathway SolutionsMYG 8 Annuity Low-Band (MVA)
8 yrs.$10,0002.50 %A
Sentinel Security Life
Personal Choice Annuity 7
7 yrs.$2,5003.25 %B++
Oxford Life
Multi-Select 7 Annuity (MVA)
7 yrs.$20,0003.05 %A-
Delaware Life
Pinnacle MYGA℠ 7 Annuity Year (MVA)
7 yrs.$10,0002.95 %A-
American National
Palladium MYG Annuity 7 High-Band (MVA)
7 yrs.$100,0002.94 %A
Guggenheim Life and Annuity
Preserve MYGA 7 Annuity High-Band (MVA)
7 yrs.$249,9992.90 %B++
American National
Palladium MYG Annuity 7 Low-Band (MVA)
7 yrs.$5,0002.84 %A
Guggenheim Life and Annuity
Preserve MYGA 7 Annuity Low-Band (MVA)
7 yrs.$10,0002.80 %B++
American General Life
American Pathway SolutionsMYG 7 Annuity High-Band (MVA)
7 yrs.$100,0002.75 %A
Midland National Life
Guarantee Ultimate 7 Annuity High-Band (MVA)
7 yrs.$200,0002.75 %A+
North American
Guarantee Choice 7 Annuity High-Band (MVA)
7 yrs.$200,0002.75 %A+
Fidelity & Guaranty Life
FG Guarantee-Plus 7 Annuity (MVA)
7 yrs.$10,0002.69 %B++
Fidelity & Guaranty Life
FG Guarantee-Platinum 7 Annuity (MVA)
7 yrs.$10,0002.65 %B++
Symetra Life
Symetra Custom 7 Annuity (No ROP) High-Band
7 yrs.$250,0002.62 %A
American General Life
American Pathway SolutionsMYG 7 Annuity Low-Band (MVA)
7 yrs.$10,0002.60 %A
Symetra Life
Symetra Custom 7 Annuity (No ROP) Mid-Band
7 yrs.$100,0002.57 %A
Midland National Life
Guarantee Ultimate 7 Annuity Low-Band (MVA)
7 yrs.$10,0002.55 %A+
North American
Guarantee Choice 7 Annuity Low-Band (MVA)
7 yrs.$10,0002.55 %A+
Great American Life
SecureGain 7 Annuity High-Band (STEP RATE)
7 yrs.$100,0002.54 %A
Great American Life
SecureGain 7 Annuity No MVA High-Band (MVA STEP RATE)
7 yrs.$100,0002.49 %A
Pacific Life
Pacific Frontiers II 7 Annuity (MVA)
7 yrs.$10,0002.45 %A+
Great American Life
SecureGain 7 Annuity Low-Band (STEP RATE)
7 yrs.$10,0002.44 %A
Great American Life
SecureGain 7 Annuity No MVA Low-Band (MVA STEP RATE)
7 yrs.$10,0002.39 %A
Symetra Life
Symetra Custom 7 Annuity (ROP) High-Band
7 yrs.$250,0002.32 %A
Symetra Life
Symetra Custom 7 Annuity (ROP) Mid-Band
7 yrs.$100,0002.27 %A
Integrity Life
MultiVantage 7 Annuity (MVA)
7 yrs.$20,0002.24 %A+
Symetra Life
Symetra Custom 7 Annuity (No ROP) Mid-Band
7 yrs.$50,0002.22 %A
National Integrity Life
MultiVantage 7 Annuity (MVA)
7 yrs.$20,0002.14 %A+
Minnesota Life
SecureOption Select 7 Annuity High-Band (MVA)
7 yrs.$100,0002.10 %A+
Symetra Life
Symetra Custom 7 Annuity (ROP) Mid-Band
7 yrs.$50,0002.07 %A
Minnesota Life
SecureOption Focus 7 Annuity High-Band
7 yrs.$100,0002.00 %A+
Symetra Life
Symetra Custom 7 Annuity (No ROP) Low-Band
7 yrs.$10,0001.92 %A
Minnesota Life
SecureOption Select 7 Annuity Low-Band (MVA)
7 yrs.$5,0001.90 %A+
Minnesota Life
SecureOption Focus 7 Annuity Mid-Band
7 yrs.$35,0001.90 %A+
Minnesota Life
SecureOption Focus 7 Annuity Low-Band
7 yrs.$10,0001.70 %A+
Symetra Life
Symetra Custom 7 Annuity (ROP) Low-Band
7 yrs.$10,0001.57 %A
American National
Palladium MYG Annuity 6 High-Band (MVA)
6 yrs.$100,0002.80 %A
EquiTrust Life
Certainty Select 6 Annuity (MVA)
6 yrs.$10,0002.75 %B++
Oxford Life
Multi-Select 6 Annuity (MVA)
6 yrs.$20,0002.75 %A-
American National
Palladium MYG Annuity 6 Low-Band (MVA)
6 yrs.$5,0002.70 %A
Guggenheim Life and Annuity
Preserve MYGA 6 Annuity High-Band (MVA)
6 yrs.$249,9992.70 %B++
Guggenheim Life and Annuity
Preserve MYGA 6 Annuity Low-Band (MVA)
6 yrs.$10,0002.60 %B++
American General Life
American Pathway SolutionsMYG 6 Annuity High-Band (MVA)
6 yrs.$100,0002.50 %A
Midland National Life
Guarantee Ultimate 6 Annuity High-Band (MVA)
6 yrs.$200,0002.50 %A+
North American
Guarantee Choice 6 Annuity High-Band (MVA)
6 yrs.$200,0002.50 %A+
American General Life
American Pathway SolutionsMYG 6 Annuity Low-Band (MVA)
6 yrs.$10,0002.35 %A
Midland National Life
Guarantee Ultimate 6 Annuity Low-Band (MVA)
6 yrs.$10,0002.25 %A+
North American
Guarantee Choice 6 Annuity Low-Band (MVA)
6 yrs.$10,0002.25 %A+
Pacific Life
Pacific Frontiers II 6 Annuity (MVA)
6 yrs.$10,0002.10 %A+
Sentinel Security Life
Personal Choice Annuity 5
5 yrs.$2,5003.10 %B++
Midland National Life
Guarantee Ultimate 5 Annuity High-Band (MVA)
5 yrs.$200,0002.75 %A+
American National
Palladium MYG Annuity 5 High-Band (MVA)
5 yrs.$100,0002.75 %A
American National
Palladium MYG Annuity 5 Low-Band (MVA)
5 yrs.$5,0002.65 %A
EquiTrust Life
Certainty Select 5 Annuity (MVA)
5 yrs.$10,0002.60 %B++
Guggenheim Life and Annuity
Preserve MYGA 5 Annuity High-Band (MVA)
5 yrs.$249,9992.60 %B++
North American
Guarantee Choice 5 Annuity High-Band (MVA)
5 yrs.$200,0002.60 %A+
Oxford Life
Multi-Select 5 Annuity (MVA)
5 yrs.$20,0002.60 %A-
Guggenheim Life and Annuity
Preserve MYGA 5 Annuity Low-Band (MVA)
5 yrs.$10,0002.50 %B++
Midland National Life
Guarantee Ultimate 5 Annuity Low-Band (MVA)
5 yrs.$10,0002.50 %A+
Symetra Life
Symetra Custom 5 Annuity (No ROP) High-Band
5 yrs.$250,0002.50 %A
Great American Life
SecureGain 5 Annuity High-Band (MVA STEP RATE)
5 yrs.$100,0002.40 %A
Delaware Life
Pinnacle MYGA℠ 5 Annuity Year (MVA)
5 yrs.$10,0002.40 %A-
American General Life
American Pathway SolutionsMYG 5 Annuity High-Band (MVA)
5 yrs.$100,0002.35 %A
North American
Guarantee Choice 5 Annuity Low-Band (MVA)
5 yrs.$10,0002.35 %A+
Great American Life
SecureGain 5 Annuity No MVA High-Band (STEP RATE)
5 yrs.$100,0002.30 %A
Great American Life
SecureGain 5 Annuity Low-Band (MVA STEP RATE)
5 yrs.$10,0002.25 %A
Symetra Life
Symetra Custom 5 Annuity (No ROP) Mid-Band
5 yrs.$100,0002.25 %A
Fidelity & Guaranty Life
FG Guarantee-Plus 5 Annuity (MVA)
5 yrs.$10,0002.25 %B++
Great American Life
SecureGain 5 Annuity No MVA Low-Band (STEP RATE)
5 yrs.$10,0002.20 %A
American General Life
American Pathway SolutionsMYG 5 Annuity Low-Band (MVA)
5 yrs.$10,0002.20 %A
Fidelity & Guaranty Life
FG Guarantee-Platinum 5 Annuity (MVA)
5 yrs.$10,0002.15 %B++
Symetra Life
Symetra Custom 5 Annuity (ROP) High-Band
5 yrs.$250,0002.15 %A
Symetra Life
Symetra Custom 5 Annuity (ROP) Mid-Band
5 yrs.$100,0002.00 %A
Symetra Life
Symetra Custom 5 Annuity (No ROP) Mid-Band
5 yrs.$50,0001.90 %A
Pacific Life
Pacific Frontiers II 5 Annuity (MVA)
5 yrs.$10,0001.80 %A+
Symetra Life
Symetra Custom 5 Annuity (No ROP) Low-Band
5 yrs.$25,0001.65 %A
Integrity Life
MultiVantage 5 Annuity (MVA)
5 yrs.$20,0001.65 %A+
National Integrity Life
MultiVantage 5 Annuity (MVA)
5 yrs.$20,0001.65 %A+
Symetra Life
Symetra Custom 5 Annuity (ROP) Mid-Band
5 yrs.$50,0001.60 %A
Minnesota Life
SecureOption Select 5 Annuity High-Band (MVA)
5 yrs.$100,0001.50 %A+
Minnesota Life
SecureOption Select 5 Annuity Low-Band (MVA)
5 yrs.$5,0001.50 %A+
Symetra Life
Symetra Custom 5 Annuity (ROP) Low-Band
5 yrs.$25,0001.50 %A
Guggenheim Life and Annuity
Preserve MYGA 4 Annuity High-Band (MVA)
4 yrs.$249,9992.10 %B++
Oxford Life
Multi-Select 4 Annuity (MVA)
4 yrs.$20,0002.05 %A-
Guggenheim Life and Annuity
Preserve MYGA 4 Annuity Low-Band (MVA)
4 yrs.$10,0002.00 %B++
Midland National Life
Guarantee Ultimate 4 Annuity High-Band (MVA)
4 yrs.$200,0002.00 %A+
North American
Guarantee Choice 4 Annuity High-Band (MVA)
4 yrs.$200,0001.90 %A+
Midland National Life
Guarantee Ultimate 4 Annuity Low-Band (MVA)
4 yrs.$10,0001.75 %A+
North American
Guarantee Choice 4 Annuity Low-Band (MVA)
4 yrs.$10,0001.65 %A+
Integrity Life
MultiVantage 4 Annuity (MVA)
4 yrs.$20,0001.25 %A+
National Integrity Life
MultiVantage 4 Annuity (MVA)
4 yrs.$20,0001.25 %A+
Guggenheim Life and Annuity
Preserve MYGA 3 Annuity High-Band (MVA)
3 yrs.$249,9991.85 %B++
EquiTrust Life
Certainty Select 3 Annuity (MVA)
3 yrs.$10,0001.80 %B++
Guggenheim Life and Annuity
Preserve MYGA 3 Annuity Low-Band (MVA)
3 yrs.$10,0001.75 %B++
Oxford Life
Multi-Select 3 Annuity (MVA)
3 yrs.$20,0001.75 %A-
Delaware Life
Pinnacle MYGA℠ 3 Annuity Year (MVA)
3 yrs.$10,0001.60 %A-
Fidelity & Guaranty Life
FG Guarantee-Platinum 3 Annuity (MVA)
3 yrs.$10,0001.60 %B++

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Comments (5)

  1. Chris:
    Apr 07, 2015 at 12:30 PM

    I bought a $70,000 annuity a few years ago, to last over 7 years. If I close it out early and I'm under 59, will I lose any of the principal $70K with any penalties? I've already made one interest earnings withdrawal last year. But wondering if "penalty" by IRS and insurance company for early closure will touch the $70,000.

  2. Hersh Stern:
    Apr 07, 2015 at 12:35 PM

    Hi Chris-

    Sounds like you bought a “deferred” annuity with a 7-year surrender charge period. I’m assuming you paid for your annuity with savings, not IRA or 401k monies. So your annuity is what we call “non-qualified.”

    Since you were able to withdraw the interest easily, it appears your annuity permits penalty-free withdrawals of interest during the 7 years. But you are not yet 59-1/2, so there is a 10% federal tax penalty on the interest you withdrew even though the insurance company was okay about it. Those are two separate issues.

    Regarding whether you can cancel your annuity during the 7 years without penalties I suggest calling the insurance company. Only the company can tell you whether or not the surrender penalty for early withdrawals will invade your original principal or investment amount. Some annuities do and some don’t.

    As far as the IRS is concerned, both regular income taxes and any pre-59-1/2 penalty taxes will only apply to the earnings in your annuity, not to the original after-tax savings you invested.

    Hersh

  3. Chris:
    Apr 07, 2015 at 04:03 PM

    Thanks so much, that answered it all! Appreciate your thoughts on it. I didn't even realize I was getting an "annuity" at the time, just some 7 year "thing." (yeah, a novice here)

  4. Betty:
    May 21, 2015 at 09:31 AM

    I'm 66 years old and have opted to receive a lump sum pension from the company I worked at for 20+ years. I'm considering rolling over 100% into an IRA to avoid paying the taxes. I would then like to take 60% of IRA and buy a deferred annuity. I'm not looking for a long-term investment. I only need an account for safekeeping and to be able to take out money in an emergency. Will I be taxed on the money I withdraw from the deferred annuity? Do you think this is a good idea? I only have 2 weeks to complete my paperwork with my decision. Please advise at your earliest convenience.

  5. Hersh Stern:
    May 21, 2015 at 09:36 AM

    Hi Betty-

    Even a short term (say, 5 year) multiyear deferred annuity would only allow limited withdrawals without surrender fee penalties or costly market value adjustments. Most deferred annuities only permit removal of the annual interest you earn each year (which could be as little as 2% or 3%). Any withdrawals above that amount would be subject to insurance company penalties. There are a few annuities that allow you to withdraw up to 10% a year penalty-free. Call me and I’ll review available options with you.

    Regarding taxes, any money you withdraw from your IRA or an IRA annuity would be subject to income taxes. There’s simply no way to avoid paying income taxes on money which was contributed by your employer on your behalf and for which no income taxes have been paid yet.

    You can click the following link to read more about taxation in multi-year deferred annuities:

    https://www.immediateannuities.com/taxation-of-annuities/understanding-taxation-fixed-index-multi-year-deferred-annuities.html

    Additionally, it’s important to know that in four years (when you reach age 70-1/2) your annuity IRA and other IRA monies will be obliged to distribute 3%-4% a year to you in order to satisfy the Required Minimum Distribution rules. That money will become taxable income.

    You can read more about Required Minimum Distributions here:

    https://www.immediateannuities.com/required-minimum-distribution/

    Finally, you asked whether buying an annuity is a good idea or not. That really depends on many, many considerations. Since you’re asking, I think you would be best served if you met with a fee-only financial planner to review your financial situation before you make any big decisions about how to allocate this pension money.

    There is a great article which discusses how you can find a financial planner which you can read here:

    https://www.immediateannuities.com/retirement/how-to-find-a-financial-planner.html

    Best regards,

    Hersh