How to unwind a 3,4, and 5 year MYGA ladder.

Go to main Forum page »

AUTHOR: Dan Wick on 6/22/2024

My SO had a fixed indexed annuity out of the penalty phase and wanted to earn a better interest rate than the 2.5% rate it had earned over the last 10 years.  She did a 1035 exchange into a Multi Year Guaranteed Annuity ladder for 3-5 years at roughly 5.85%. This is a taxable (non deferred) account that will shelter the money from taxes for the length of the annuity.  She will not need lifetime income as her current guaranteed income floor is more than sufficient to cover expenses.  Reducing the taxes and possible IIRMA penalty is the goal at this time.  I’m thinking a 10 year immediate annuity may be the best solution to spread out the tax hit on each annuity as it matures.  Is there another way to handle this that I am missing?  SO is 64 at this time and MYGA funds are about 25% of her net worth.


Notify of
Oldest Most Voted
Inline Feedbacks
View all comments

Free Newsletter