Lincoln MYGuarantee Plus Fixed Annuity – Predictable Growth Without Market Risk

The Lincoln MYGuarantee Plus is a Multi-Year Guaranteed Annuity (MYGA) issued by The Lincoln National Life Insurance Company. It provides a fixed declared interest rate locked in at contract issue for a term you select — ranging from 3 to 10 years. Unlike fixed indexed annuities, a MYGA credits interest at a straight fixed rate with no market linkage, no participation rates, and no annual resets. Your rate is the rate you receive for the full guarantee period, compounding tax-deferred until distributions begin. For a foundational explanation of how MYGAs work and how they differ from other annuity structures, reviewing What Is a Multi-Year Guarantee Annuity? provides useful context.

Interest is credited at the declared fixed rate established when your contract is issued. That rate applies uniformly for the entire guarantee period you selected — the same rate, compounding annually, with no variation based on market conditions, index performance, or interest rate movements during the term. There are no participation rates, no caps, and no spreads to calculate. If you select a 5-year term at a declared rate, that rate credits annually for all five years. At the end of the guarantee period, you have the option to renew at then-current rates, take a full distribution without surrender charges, or reposition into another strategy. For side-by-side yield comparison across different term lengths, see 3-year fixed annuity rates and 7-year fixed annuity rates.

Yes. As a MYGA, the MYGuarantee Plus is not linked to any market index, stock portfolio, or equity performance of any kind. Your accumulated contract value cannot decline due to market conditions. The declared fixed rate is credited on schedule regardless of what financial markets do during your guarantee period. This is the fundamental difference between a MYGA and variable or indexed annuities — there are no market-linked inputs that can reduce your value. The only factors that can affect the amount you receive are surrender charges on early withdrawals above the penalty-free amount and, upon death, the death benefit is paid in full without surrender charges to your named beneficiaries.

Beginning in the second contract year, the MYGuarantee Plus allows penalty-free withdrawals of up to 10% of the contract value annually. This provision gives you structured liquidity during the guarantee period without triggering surrender charges. You can use penalty-free withdrawals for supplemental income needs, Required Minimum Distributions from qualified accounts, or unexpected expenses. Withdrawals beyond the 10% threshold during the surrender charge period may incur charges that reduce the amount you receive. For a full explanation of how surrender charges are structured and calculated, review Annuity Surrender Charges Explained.

Lincoln includes two built-in hardship waivers in the MYGuarantee Plus that provide access to contract funds beyond the standard penalty-free provision in qualifying circumstances. The Nursing Home Waiver allows penalty-free access to your contract value if you enter a qualifying nursing home facility during the surrender charge period. The Terminal Illness Waiver allows surrender charges to be waived upon diagnosis of a qualifying terminal illness. These provisions are included in the contract without an additional rider fee and can be particularly reassuring for retirees concerned about healthcare uncertainty. For context on how nursing home provisions differ across annuity carriers and products, review Annuity With a Nursing Home Care Rider.

Interest earned inside the MYGuarantee Plus grows tax-deferred — it is not taxed annually, even as it compounds year over year inside the contract. When distributions begin, taxation applies to the gain portion using the last-in-first-out (LIFO) rule for non-qualified contracts, meaning gains are withdrawn and taxed first before return of principal. Distributions are taxed as ordinary income, not at capital gains rates. For qualified contracts — IRAs or 401(k) rollover funds — the full distribution is taxable as ordinary income since contributions were made pre-tax. Withdrawals before age 59½ may also be subject to a 10% IRS early withdrawal penalty in addition to ordinary income tax. For a comprehensive overview of how annuity taxation works across different account types and distribution scenarios, review How Are Annuities Taxed?

At the conclusion of the selected guarantee term, you are not automatically locked into another commitment. You have full flexibility over what happens next. You may renew the contract for another guarantee period at then-current market rates — locking in whatever Lincoln’s declared rate is at that time. You may take a full distribution of your accumulated value without surrender charges, since the guarantee period has concluded. You may reposition the funds into another annuity strategy — a fixed indexed annuity for index-linked growth potential, or an income annuity to convert the accumulated value into a guaranteed payment stream. Some clients at this stage also evaluate best retirement income annuities to compare immediate versus deferred income structures before deciding how to redeploy the matured funds.

Yes. The Lincoln MYGuarantee Plus is available for both qualified accounts — Traditional IRAs and funds rolled over from 401(k) plans — and non-qualified after-tax funds. For qualified rollovers, a direct trustee-to-trustee transfer is the most tax-efficient way to reposition funds without triggering a taxable distribution. The contract’s RMD-friendly withdrawal provisions allow Required Minimum Distributions to be taken within the penalty-free withdrawal provision, helping coordinate the annuity with IRS distribution obligations for qualified account holders. Understanding how the annuity coordinates with your existing tax situation before committing is important, and this is an area where independent broker guidance adds meaningful value compared to purchasing through a single carrier directly.

The MYGuarantee Plus includes a full accumulation value death benefit. Upon death, beneficiaries receive the entire accumulated contract value — surrender charges are waived on the death benefit, meaning your beneficiaries receive the full amount regardless of where the contract is within the surrender charge period. This transfer is made directly to named beneficiaries and typically bypasses the probate process, simplifying estate administration and reducing delays during what is already a difficult time. Proper beneficiary designation at contract issue is critical to ensuring smooth distribution. For a full explanation of annuity beneficiary options — including spousal continuation provisions and payout choices available to beneficiaries — review Annuity Beneficiary Death Benefits.

The MYGuarantee Plus is best suited for four primary retirement planning profiles. CD and bond repositioners who want better yields than banks offer, with the added structural advantages of tax deferral, hardship waivers, and beneficiary transfer mechanics that CDs do not provide. Pre-retirees aged 55 to 70 who want guaranteed, predictable growth during the years before income begins without any market exposure affecting their plan. Ladder strategists who stagger 3- to 10-year contracts with different maturities to create rolling liquidity windows while optimizing rate capture across the yield curve. And conservative retirees who want to protect principal while maintaining annual access to interest through the penalty-free withdrawal provision. If you are still evaluating whether a fixed guaranteed annuity structure fits your specific goals, reviewing whether annuities are worth it provides additional perspective on how this product type compares to other retirement accumulation vehicles.