That’s a good point that I should have mentioned upthread.There's also a tax penalty if under age 59.5 when withdrawing that MYGA. Don't know OP's current age.
If OP withdraws from a taxable annuity before he/she reaches age 59.5, then there is an additional 10% federal tax penalty, beyond regular income taxes.
If this applies to OP, one way to think about it is that the 5.10% interest rate quoted above is reduced by about 10%, or 0.51%, to 4.59%.
Statistics: Posted by Stinky — Sat Aug 24, 2024 7:20 am