Annuities

We help you evaluate fixed (including multi-year guaranteed annuities/MYGAs), fixed indexed, variable, immediate income (SPIA), deferred income (DIA), and registered index-linked annuities (RILAs) so you see guarantees, growth methods, fees, and income options side-by-side.

You pay a premium to an insurer; your money can grow tax-deferred and later convert into cash flow or withdrawals. Guarantees (such as minimum rates or lifetime income) are backed by the insurer’s claims-paying ability—not a bank or the government.

No. The FDIC does not insure annuities or life insurance policies—even if purchased at a bank.

Immediate (SPIA) annuities start income right away (usually within 12 months). Deferred annuities grow first, then can provide income later by withdrawals, riders, or annuitization.

• Fixed: A declared rate; principal/crediting tied to the contract.

• Fixed indexed: Crediting is linked to a market index with caps/spreads; most are not SEC-registered securities.

• Variable: Invested in market subaccounts; considered securities and regulated by the SEC/FINRA.

• RILA: SEC-registered, index-linked annuities with tailored SEC disclosure rules (since 2024).

Expect surrender charges during a set period, and for variable/RILA contracts, ongoing costs like mortality & expense (M&E) risk charges, admin fees, investment expenses, and any rider fees. We’ll surface all costs before you decide.

Surrender periods commonly run about 6–8 years on variable annuities, and many contracts allow up to 10% of account value annually without surrender charge (varies by contract).

Growth is tax-deferred. For nonqualified annuities, withdrawals are generally LIFO (earnings out first = taxable as ordinary income). Early withdrawals may face a 10% additional tax on the taxable portion before age 59½, unless an IRS exception applies. Always consult your tax pro.

RMDs generally begin at age 73 (you can delay the first to April 1 of the following year). A QLAC inside certain plans/IRAs can defer RMDs on the QLAC amount—SECURE 2.0 raised the QLAC limit to $200,000 with inflation indexing (the IRS increased it to $210,000 for 2025).

A 1035 exchange can allow a tax-free swap from one annuity to another (same owner/annuitant), preserving tax deferral. We’ll verify eligibility and suitability before recommending any exchange.

Common add-ons include lifetime income (GLWB/GMIB), enhanced death benefits, and long-term care/chronic illness features. Riders add benefits for a fee; we’ll show the value vs. cost in dollars and trade-offs.

Annuity guarantees rely on the insurer’s financial strength; we help you review ratings and complaints via NAIC tools. States also have guaranty associations with limits; however, using that coverage as a sales inducement is prohibited in most states.

Yes. Idaho law provides a 20-day free-examination (“free-look”) period on annuity contracts—clearly shown on your policy cover. If you change your mind within that window, you can return the contract.

Idaho adopted the NAIC Best Interest standard for annuity transactions; producers must complete training and act in the client’s best interest when recommending annuities.