Thursday   November 14, 2019   Bookmark  |   Link to this site 
Type of Annuities
What is an annuity?
A Fixed Annuity?
A MYGA or CD-Type?
A Indexed Annuity?
A Immediate Anuity?
A Variable Annuity?
How do they work?
Yield to Surrender
Tax Treatment
Tax Comparison
Calculate & Compare
Income for Life
Premium Taxes
Guarantee Laws
Switch Annuities?
Taxable - Deferred
Savings Goal
What will I have??
Number of Years
Dollars Monthly?
Lump Sum
Future Value?
Charitable Gift
What are they?
Example of a Gift
ACGA Annuity Rates
Split Annuities
What are they?
Ratios & Income
Minimum Required
MRD Calculations
Pre 59 1/2 Penalty
59 1/2 Exceptions
59 1/2 Avoidance
Rollovers and
Whats a Rollover?
1035 Exchanges
Research and Refrence
Tax Code Online
IRS Publications

Life Expectancy

What Is A Multi Year Guarantee or CD Type Annuity?

A MYGA is an annuity issued with a guaranteed interest rate period which is equal to the length of time that surrender charges last.
5 Year MYGA
Year 1 2 3 4 5 6
Interest Rate 5.00% 5.00% 5.00% 5.00% 5.00%  
Surrender Charges 5.00% 4.00% 3.00% 2.00% 1.00% None

Guaranteed Interest Rate Years Equals Surrender Charge Period

A Multi Year Guarantee Annuity as show above has an Interest Rate Guarantee Period of 5 Years, the guaranteed interest rate for each year is 5.00%, and is guaranteed not to change for the length of the contract.

Withdrawal Provision

The Withdrawal Provision is a feature that almost all MYGA's have. This provision allows you to withdraw a percentage of your account value or your initial premium each policy year. For example if this MYGA had a 10% Free Withdrawal Provision at the end of each year you could withdraw up to 10% of the previous years account value. For example: any money withdrawn in the third in excess of the 10% Free Withdrawal Provision would be subject to a 3.00% penalty.

Withdrawal of any funds prior to age of 59 1/2 are subject to an IRS Penalty of 10% of the funds withdrawn. This is in addition to any penalties incurred as part of the annuity contract.

Annuities Online Lifetime Income Benefit Rider Quotes Variable Annuities Onlince