Nassau MYAnnuity 5X/7X – Fixed Growth with Long-Term Protection

The Nassau MYAnnuity 5X/7X is a multi-year guaranteed annuity (MYGA) — a type of fixed deferred annuity that credits a guaranteed fixed interest rate for a specific term of either 5 or 7 years with full principal protection and tax-deferred growth throughout the guarantee period. MYGAs function similarly to bank CDs in their basic structure — you commit funds for a defined period and receive a guaranteed rate — but they typically offer tax-deferred compounding, beneficiary-friendly death benefit provisions, and potential rate advantages over comparable bank products. Unlike fixed indexed annuities or variable annuities, the MYAnnuity 5X/7X has no participation rate, no cap, no index strategy, and no market-linked calculation — the credited rate is fixed and guaranteed for the entire term regardless of what markets or interest rates do during that period. For a foundational understanding of how this category of annuity works, our resource on how a fixed annuity works explains the mechanics before you compare specific products.

Your principal is protected from market losses as long as you follow the contract terms and do not take withdrawals that exceed the free-withdrawal provision during the surrender period. The Nassau MYAnnuity 5X/7X does not invest your premium in equities, bonds, or any market-linked vehicles — the guarantee is a contractual obligation of Nassau Life and Annuity Company backed by the company’s general account and financial reserves, not by market performance. The meaningful risk in a MYGA is not investment risk but surrender charge risk: withdrawals that exceed the free-withdrawal provision during the guarantee period are subject to surrender charges that reduce the net amount received. If you must access more than the permitted free withdrawal amount before the guarantee period concludes, the surrender charge schedule in your specific contract determines how much of the excess is returned to you. Our resource on annuity surrender charges explained provides context on how these schedules typically work and what to compare across carriers.

When you purchase the MYAnnuity 5X/7X, you choose either the 5-year or 7-year guarantee option. The fixed interest rate credited to your contract is guaranteed for the entire chosen term — every year of the guarantee period credits the same contractually defined rate regardless of changes in market interest rates, Federal Reserve policy, or the broader interest rate environment during those years. This rate lock is one of the primary advantages of MYGAs relative to bank CDs that may have shorter terms requiring reinvestment at whatever rate is available at maturity, and relative to floating-rate products that change as rates change. The longer-term option (7-year) typically offers a higher guaranteed rate than the shorter-term option (5-year) to compensate for the additional commitment period — a trade-off between yield and flexibility that should be evaluated against your actual liquidity horizon and retirement income timeline.

Yes, though liquidity is limited by the contract’s surrender charge schedule during the guarantee period. The MYAnnuity 5X/7X typically allows penalty-free withdrawals of up to 10% of the contract value annually after the first contract year — providing meaningful access to funds without triggering surrender charges for retirees who need periodic distributions but are not accessing the full balance. Most contracts also include waiver provisions for nursing home confinement and terminal illness that may permit larger withdrawals without surrender charges if qualifying health conditions arise. For retirees with Required Minimum Distribution obligations, the contract typically permits RMD withdrawals beyond the standard free-withdrawal allowance without additional surrender charges — an important provision to confirm before funding a qualified annuity with IRA assets. Our resource on annuity free withdrawal rules explains how these provisions work across the MYGA category so you can compare specific contract terms.

At the end of the 5-year or 7-year guarantee period, you enter a post-maturity window during which the contract can be accessed, redirected, or renewed without surrender charges. Your options typically include renewing into a new guarantee period at the rate available at that time if conditions are favorable; withdrawing the full accumulated value without surrender charges to reposition assets into a different retirement income structure, another MYGA, or a liquid account; or converting the accumulated value to an annuitized income stream for a defined period or for life. Nassau will typically notify you before the guarantee period ends with the renewal rate and your options. It is important to respond within the post-maturity window — contracts that passively renew without owner direction may renew at rates or terms that are not optimal for your current plan. Planning the post-maturity decision at least 90 days before the guarantee period ends gives you sufficient time to compare available options and execute the best path.

Yes. Interest credited inside the Nassau MYAnnuity 5X/7X grows tax-deferred — you do not pay annual income tax on the credited interest as it accumulates, which allows compounding to work uninterrupted over the guarantee period. Taxes are generally due only when funds are withdrawn from the contract. For non-qualified funds (after-tax savings), withdrawals are taxed on the gain portion first under LIFO (last in, first out) rules until the full gain has been distributed, after which returns of original principal are tax-free. For qualified funds held inside an IRA or other qualified account, all withdrawals are fully taxable as ordinary income since the original contributions were made pre-tax. The tax deferral advantage relative to a taxable CD of the same rate is meaningful over multi-year holding periods: the annual tax drag on CD interest reduces the effective compounding rate each year, while the MYGA’s deferred taxation allows the full credited rate to compound continuously. Our resource on how annuities are taxed covers the full distribution taxation framework.

In most cases yes — the Nassau MYAnnuity 5X/7X can be funded with qualified money via a direct transfer or rollover from a Traditional IRA, rollover IRA, or employer plan such as a 401(k), 403(b), or 457(b). A properly executed direct rollover — where funds transfer directly between the sending institution and Nassau rather than passing through your hands — maintains the tax-deferred status of the funds without triggering taxable income, withholding, or the 60-day rollover clock. For retirees repositioning assets from an old employer plan, our resource on how to transfer a 401(k) to an annuity covers the process and timing considerations. For IRA-specific transfers, our resource on how to transfer an IRA to an annuity covers the direct transfer mechanics. One important consideration for qualified annuities is RMD compliance — confirm that the contract’s free-withdrawal provisions accommodate RMD distributions without additional surrender charges before funding an IRA-qualified MYGA with assets subject to RMD obligations.

Your beneficiaries typically receive the full contract value according to the death benefit provisions in the MYAnnuity 5X/7X contract — generally without surrender charges, so the beneficiary receives the full accumulated value regardless of where in the guarantee period death occurs. In most cases, assets transfer directly to named beneficiaries, bypassing probate and simplifying estate settlement for the surviving family. Beneficiaries who inherit an annuity have distribution options that may include lump-sum receipt, continued deferral within defined IRS timeframes, or systematic distribution — the options available depend on the beneficiary’s relationship to the annuitant (spouse vs. non-spouse beneficiaries have different rules) and IRS rules governing inherited qualified or non-qualified annuities. Our resource on annuity beneficiary death benefits explains how death benefits work and what inherited annuity options beneficiaries typically have. For annuities held inside IRAs, the inherited qualified annuity rules apply and have specific timing requirements for required distributions.

The Nassau MYAnnuity 5X/7X is generally best suited for conservative savers who want fixed, predictable growth with full principal protection and a clear time horizon for their money — and who specifically want to avoid the variability of market-linked products during that holding period. It works particularly well for: retirees who want a “safe-money anchor” for a defined portion of their portfolio while keeping other assets in growth-oriented structures; individuals repositioning maturing CDs or bank savings into a higher-yielding but still conservative option that benefits from tax deferral; pre-retirees who want to lock in a competitive rate now while they finalize their income strategy for a retirement date a few years away; and anyone building a MYGA laddering strategy with staggered maturity dates across multiple carriers and terms. It is not designed for individuals who need complete liquidity throughout the holding period, who want market-linked upside potential, or who want guaranteed lifetime income without a separate income structure. For retirees uncertain whether a fixed accumulation product or an income-focused structure better fits their current needs, our resource on are annuities a good investment in retirement helps frame the comparison.