PebylFinancial
Fixed Insurance Product

Multi-Year Guaranteed Annuity (MYGA)

A fixed-rate annuity contract issued by an insurance carrier with a declared interest rate for a set term.

A piggy bank, cash and a calendar — fixed-rate savings concept

Overview

A MYGA is a deferred annuity contract that credits a fixed interest rate, declared by the issuing insurance carrier, for a stated number of years (commonly 3, 5, or 7). The rate is guaranteed for the contract term, subject to the claims-paying ability of the issuing carrier. Credited interest accumulates on a tax-deferred basis. MYGAs are not bank deposits, are not FDIC-insured, and are not guaranteed by any federal agency. They share some features with bank CDs (a known rate for a known term) and differ in others (tax deferral, surrender charges, carrier-backing rather than FDIC).

How it works

  1. 1
    You fund the contract with cash, a transfer from an existing IRA, or an eligible rollover from a 403(b), 457(b), TSP, or pension plan
  2. 2
    The carrier credits a fixed declared interest rate for the term you select
  3. 3
    Credited interest is tax-deferred outside an IRA (no annual 1099 on credited interest)
  4. 4
    At the end of the term you may renew, exchange (Section 1035), annuitize, or surrender, subject to contract terms

Best for

  • Individuals seeking a fixed declared interest rate for a defined term
  • Funds that are not needed for liquidity during the surrender-charge period
  • Rollovers of eligible 403(b), 457(b), TSP, or pension lump-sum dollars into a fixed-rate IRA

Considerations

  • Withdrawals above the contract's free-withdrawal amount during the surrender-charge period are subject to surrender charges and any market-value adjustment (MVA)
  • Withdrawals prior to age 59½ may be subject to a 10% IRS additional tax in addition to ordinary income tax
  • Most contracts allow 5–10% penalty-free annual withdrawals — terms are stated in the contract
  • All guarantees are subject solely to the financial strength and claims-paying ability of the issuing insurance carrier; MYGAs are not FDIC-insured

Fees & charges

  • Most base contracts have no explicit annual contract fee
  • Surrender-charge schedule and any market-value adjustment are disclosed in the contract before issue
  • Optional riders carry their own annual rider charges, disclosed in writing
12 Years · Same Starting Dollar
Why the floor matters
Market account · swings every year Fixed account · floor stays put

Want a personalized illustration?

A licensed Pebyl Financial agent runs the carrier numbers based on your age, premium, and state. Educational, not a sales pitch.

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Important disclosure
Product features, rates, caps, spreads, participation rates, and rider costs are set by the issuing carrier, vary by state, and are subject to change. This page is educational and does not constitute an offer to sell or solicitation to purchase. Guarantees, where referenced, are subject to the claims-paying ability of the issuing insurance carrier.