MYGA Maturity Published: 2026-10-03

What Happens When Your MYGA Matures?

Written by Hans Goldstein, independent licensed insurance producer · CA license 4273294 · NPN 20602398
Published October 3, 2026

Short answer: when a MYGA’s guarantee period ends, the insurer opens a short window, commonly about 30 days, where you can take the money with no surrender charge. Your choices: renew at the insurer’s renewal rate, move it tax-free to a new MYGA with a 1035 exchange, cash out (the gain is taxed as ordinary income), or turn it into income. If you do nothing, most contracts renew automatically, often at a lower rate and sometimes with a new surrender schedule.

The maturity window

A few weeks before the term ends, the insurer should mail a maturity or renewal notice with the rate it will pay if you stay. The window during which you can leave without a surrender charge is set by your contract; 30 days is common, some are shorter. Read your contract’s “end of guarantee period” section now, not the week it expires.

Your four options

Option	Tax	When it fits
Renew with the same insurer	None until withdrawn	The renewal rate is competitive with new-money rates
1035 exchange to a new MYGA	None (IRC §1035)	A better rate or term elsewhere, the usual case
Cash out	Gain taxed as ordinary income; 10% penalty before 59½	You need the money, or your bracket is low this year
Annuitize or take income	Part of each payment is tax-free return of premium	You want guaranteed lifetime or period income

The renewal-rate trap

New-money rates are how insurers compete for buyers. Renewal rates are what they pay customers who already stayed. Some carriers keep the two close; others do not. That gap is what I grade in renewal rate integrity. A renewal offer 1 to 2 points below what the market pays new buyers is not unusual, and on $300,000 for 5 years that is real money. Use the calculator below with your renewal notice in hand.

Renew or move? Calculator

Value at maturity ($)

Renewal rate offered (%)

New MYGA rate (%)

Years

Default new rate 5.85% = one A-rated insurer’s 5-year rate card effective September 25, 2026 ($100,000+, most states). Renewal rates often apply for one year at a time, not the full term; this simple model holds both rates flat. Pre-tax, annual compounding.

Rate alert

Rates expire like milk.

The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.

We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.

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How a 1035 exchange at maturity works

Pick the new contract and apply before the window closes, marking it as a 1035 exchange.
The new insurer sends transfer paperwork to the old one. You never touch the money, so nothing is taxed and your cost basis carries over.
Expect 2 to 4 weeks. Start early: a transfer that misses the window can trigger the old contract’s renewal and a new surrender schedule.

Step by step: 1035 exchange guide, plus the timing math in the 1035 timing calculator.

Plan the next maturity now

If you hold more than one MYGA, staggering the maturities gives you a renewal decision every year or two instead of one big bet on rates. Build it with the MYGA ladder calculator. If rates have fallen since you bought, see what happens to a MYGA when rates drop.

Want a second opinion on your numbers?

Straight answer, no pressure.

Send your details and I’ll reply with current guaranteed rates from highly rated insurers for your amount and term, and a plain-English read on your situation. If what you have is already the right fit, I’ll say so.

Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple carriers

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Frequently Asked Questions

What happens if I do nothing when my MYGA matures?

Most contracts renew automatically at the insurer's declared renewal rate, which is often lower than what new buyers are offered, and some start a new surrender schedule. Check your contract's end-of-guarantee-period terms.

How long do I have to move a MYGA at maturity?

The penalty-free window is set by your contract. About 30 days after the end of the guarantee period is common, and some are shorter. Start a 1035 exchange a few weeks before the date.

Do I pay tax when my MYGA matures?

Not if you renew or move it to another annuity with a 1035 exchange. If you take the cash, the interest earned is taxed as ordinary income, plus a 10% IRS penalty on that gain if you are under 59 and a half.

Can I move a matured MYGA to a different insurer?

Yes. A 1035 exchange moves it to a new annuity at any insurer tax-free, and during the maturity window there is no surrender charge on the old contract.

Sources

Goldstein & Co. LLC dba Goldstein Insurance Services, CA lic. #4273294 · Hans Goldstein, NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com

Rates: A-rated-or-better 5-year MYGAs 5.80% to 6.00% (AnnuityRateWatch carrier rate data, September 24, 2026); Treasury par yields from the U.S. Treasury for October 2, 2026; CD, savings and money market figures from DepositAccounts, bank and fund sites, September 23 to 25, 2026. Rates change often; confirm before you act.

This page is general education. It is not tax, legal or investment advice and is not an offer or recommendation for any specific product. Calculator results are estimates from the stated assumptions, not quotes. Guarantees in a fixed annuity are contractual and are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are not FDIC insured. Annuities have surrender charges and other limitations; read the contract and disclosure before you buy. Consult a tax professional or attorney about your situation.