Term and renewal options
Multi-year guaranteed annuities give you flexibility. You can choose from multiple guarantee periods when you purchase the contract. With three-, five- and seven- year terms, you decide on a plan that best fits your lifestyle.
When your guaranteed period ends, you can choose a new period, depending on availability. The interest rate you receive may vary from your previous rate, but will be in line with the rates on new contracts. If you choose not to renew your MYGA, you can surrender your contract without surrender charges.
Tax considerations and withdrawals
The tax benefits of MYGAs are significant. Your money will grow tax deferred, and income taxes are only applied to your annuity payments.
After the first year, Amica allows you to withdraw 10% of your annuity value without penalty. Surrender charges may apply for withdrawals above 10% during the guarantee period. If you decide to withdraw money from your annuity before the age of 59½, you may be subject to a 10% early withdrawal penalty tax. It may be best to speak with a financial or tax professional before making any withdrawals.
If your MYGA is funded by non-qualified funds, like money from your savings account that has already been taxed, then you would only pay taxes on interest when withdrawn.
Is a MYGA with Amica right for you?
Multi-year guaranteed annuities benefit those who:
- Have already retired or are close to retirement.
- Are looking for an investment that will protect your principal from market fluctuations.
- Desire the stability provided by fixed interest rates for a specified period.
- Have long-term financial goals.
Multi-year guaranteed annuities provide a predictable and steady income that will give you financial peace of mind in your retirement. For more information, check out our downloadable FAQ sheet.