Single Premium Tax Deferred Fixed Annuities


A tax-deferred fixed annuity is an insurance contract between an individual (or trust) and an insurance company. Fixed annuities offer guaranteed fixed interest accumulation year after year. Deferred annuity policies increase in value every year GUARANTEED!  They are a safe alternative for your retirement savings.

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Deferred annuities are primarily used as an accumulation vehicle for retirement savings. The most used type of single premium deferred annuity is the Multi-Year Guarantee Annuity.

The MYGA has an initial term from 1-10 years. The rate on a MYGA is set at issue and will not change during the initial term. After the initial term, the full accumulation value is available for withdrawal or transfer. This gives the ability to know the exact account value at any time in the future. An advantage to the MYGA is the comfort in knowing the rate will not reduce during the initial term and after the initial term the full accumulation value is available for withdrawal or transfer. An MYGA is a guarantee for your financial future.


Tax-deferral means postponing your taxes on interest earnings until a future point in time. In the meantime, you earn interest on the money you're not paying in taxes. You can accumulate more money over a shorter period of time, which ultimately will provide you with a greater income.

With an MYGA, taxes are not paid on the interest earned until a withdrawal is made, unlike a bank CD where interest is taxed annually. (Please note that money not previously taxed is taxed as income when withdrawn. Withdrawals from a Tax-Qualified Plan before age 59˝ may be subject to a 10% federal tax penalty.)

To illustrate - the increased earnings capacity of tax-deferred interest compared to fully-taxable earnings. $100,000 at 6.0% will earn $6,000 of interest in a year. A 30% tax bracket means that approximately $1,800 of those earnings will be lost in taxes, leaving only $4,200 to compound the next year. If these same earnings were tax-deferred, the full $6,000 would be available to earn even more interest. The longer you can postpone taxes, the greater your gain.

How Effective is Tax-Deferred Growth?

Interest earnings in a fixed annuity accumulate free from current taxation until you make a withdrawal.  This can have a significant impact on the growth of your savings over time.

This example assumes a hypothetical $100,000 initial allocation, a 5.5% annual rate of return, and a 28% tax rate. (The actual tax results of any distribution will depend upon an individual’s personal tax circumstances.) This illustration is hypothetical and not intended to reflect the past or future performance of any product.


6 Year Initial Term MYGA (Terms range for 1-10 years call 800-373-9697 for personalized assistance)

Assuming no withdrawals are made, a $100,000 premium placed into an MYGA with a guaranteed rate of 3.00% for 6 year initial term would grow to $119,405 after 6 years, based on rates as of 04/22/2016. That is over a 19.41% gain on the initial premium after the 6 years, GUARANTEED.  There is a wide variety of MYGA annuities available and FSD Financial shops the market constantly to find the highest rates with the strongest companies. Give the annuity experts at FSD Financial a call or email them for personalized service. FSD wants to help ensure that you find the most suitable product for your retirement needs.  

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Fixed annuities offering competitive interest rates are insurance products. The "insurance" part of fixed annuities make up the long term guarantees. Like a bank CD, fixed annuities offer a guaranteed rate for a specified period or term. The difference is at renewal, unlike a CD, fixed annuities are guaranteed. They will never renew below a certain rate. The minimum guaranteed rate is set at issue. 

There are no charges or fees on any Single Premium Deferred Annuities. All funds go to work immediately, no upfront or back-end loads. Rates quoted are net of all expenses.

Most deferred annuities allow for an annual penalty free withdrawal. The free withdrawal is a percentage of the accumulated value, usually this percentage is between 3% and 10%. Early withdrawal charges may apply on amounts withdrawn in excess of the free withdrawal provisions within the contract.

Fixed annuities are guaranteed by the claim paying ability of major, top rated life insurance companies. We will provide financial information on all carriers we represent. (
Company ratings represent an opinion of financial strength and the company's ability to meet ongoing obligations to policyholders.)

Interest rates inside a fixed annuity are guaranteed. Principal and annuity purchase rates are also guaranteed. Some fixed annuities offer a money-back guarantee at anytime.

At death, the annuity may be transferred to named beneficiaries, avoiding the probate process.


All clients.

Not all products are approved in every state. Check with us for state availabilities.

Consider a fixed annuity if you want to transfer or rollover other older retirement accounts. We can assist in rolling over old 401Ks or other employer plans. We also assist in tax free exchanges for existing annuities via a 1035 exchange.

Is an annuity right for you? Do you have additional liquid assets available in case of unseen needs? Annuities should be viewed as long-term financial instruments.

Please be aware that withdrawal charge periods may last from 1-10 years. These features will be clearly disclosed. However, some companies waive the withdrawal charge in the event of nursing home, premature death or annuitization on many of their fixed annuity products. (Annuitization covers accumulation valued to a guaranteed income stream. 

More information on deferred annuities.

How To Apply

FSD Financial is available to assist with the application process (M-F 9am -4:30pm PST)
  1. We will UPS/FedEx all paperwork with a pre-paid return overnight envelope.
  2. Information provided by you on the application kit will begin the process of issuing a contract.
  3. Our insurance experts will help fill out the application kit and suitability form as answers must be complete and detailed.

This website is for illustrative purposes only and is not a contract. When you are issued Fixed Annuity Insurance, you'll receive a Contract or Certificate of Insurance. The Contract / Certificate provides you with detailed information on the annuity you have chosen. It also gives you 10 - 30 days to review your coverage to make sure it's exactly what you expected. If you're not satisfied, for any reason, just return your Contract / Certificate of Insurance to the FSD Financial Services office. You will be able to free look the contract.


Call toll-free: 800-373-9697

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