Multi-Year Guaranteed Annuities
A MYGA is a fixed annuity that locks a guaranteed interest rate for a set term while protecting principal from market loss. Your money grows tax deferred during the term. At the end, you can renew, transfer to another contract, take withdrawals, or convert value to income that supports retirement.
With a MYGA, you fund the contract with a single premium or a rollover. The insurer credits a fixed rate for the entire term you select. Many contracts include limited penalty-free withdrawals each year, with additional withdrawals subject to surrender charges. Earnings are taxed as ordinary income when withdrawn, and distributions before age 59½ may incur a federal penalty.
When A Multi-Year Guaranteed Annuity Fits
A MYGA can suit savers who want steady growth without market exposure and a clear timeline. It can bridge the years before retirement, hold cash earmarked for near-term goals, or anchor a conservative portion of a portfolio. Many clients also use MYGAs for laddering, spreading maturities over several terms to balance yield and flexibility.
Key Benefits
- Guaranteed rate for the full term
- Principal protection from market loss
- Tax-deferred growth that can compound faster than taxable accounts
- Simple structure that is easy to track
- Beneficiary features that can pass remaining value to heirs
Important Considerations
- Liquidity is limited by surrender schedules and withdrawal rules
- Locked rates can create opportunity cost if market rates rise
- Earnings are taxed as ordinary income when taken
- Guarantees rely on the claims-paying ability of the issuing insurer
MYGA vs CDs & Other Fixed Annuities
Both offer guaranteed rates for a set term. CDs are usually taxable each year, while MYGA growth is tax deferred until withdrawn. CDs are backed by bank insurance where applicable, while MYGAs depend on the insurer’s strength. Your advisor will compare rates, terms, and liquidity to see which tool fits your plan.
Traditional fixed annuities reset the rate each year. A MYGA locks it for the whole term, which many clients prefer for budgeting. Fixed index annuities credit interest by index formulas and can introduce caps or participation rates. We will show how each choice affects growth, flexibility, and future income.
Using MYGAs For Income
When the term ends, you can renew, transfer to another MYGA, begin scheduled withdrawals, or annuitize for payments over a period or for life.
We map these choices alongside other income sources so cash flow stays predictable and aligned with your goals.
Ready To See Current MYGA Rates?
Request a consultation and we will compare carriers, terms, and liquidity features, then outline clear next steps for your timeline. No obligation.