Iowa made history in 2023: the state completely eliminated income taxes on retirement income for residents age 55 and older. That means Iowa annuity owners 55+ pay zero Iowa state income tax on withdrawals — not a reduced rate, not a partial exemption, but nothing. Des Moines, Cedar Rapids, Iowa City, and the Quad Cities now offer retirees a tax environment comparable to Florida or Nevada for retirement income specifically. Before shopping carriers, take a few minutes to understand how annuities work and which type fits your plan.
Below are today’s best MYGA rates available to Iowa residents, filtered to A-rated carriers only, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Axonic Insurance | Waypoint 2 MYGA | 5.00%Top Rate | 2 yr | $100,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 2 | 4.80% | 2 yr | $70,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 4.75% | 2 yr | $25,000 | 10% | |
| Mass Mutual | Premier Voyage 2 | 3.45% | 2 yr | $1,000,000 | 10% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60%Top Rate | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.40% | 3 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 3 | 5.25% | 3 yr | $2,500 | 0% | |
| Knighthead Life | Staysail 3 With Liquidity (Simple Interest) SI | 5.25% | 3 yr | $100,000 | 10% | |
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 5.20% | 3 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 4.90% | 3 yr | $100,000 | Interest Only | |
| Oceanview Life and Annuity | Harbourview 3 | 4.90% | 3 yr | $70,000 | 10% | |
| Midland National Life | MNL Guarantee Pro 3 | 4.85% | 3 yr | $100,000 | Interest Only |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 4 | 5.20%Top Rate | 4 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 4 | 5.10% | 4 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 4.90% | 4 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 4 | 4.80% | 4 yr | $10,000 | 10% | |
| GBU Life | Asset Guard Select 4 | 4.75% | 4 yr | $25,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 4.65% | 4 yr | $100,000 | 10% | |
| S.USA Life Insurance Company, Inc. | Select Choice® Plus 1 (4) Year Plan Base Policy MVA | 4.55% | 4 yr | $100,000 | 0% | |
| Corebridge Financial | Corebridge Pathway Choicesm Fixed 4 Annuity GROP | 4.50% | 4 yr | $100,000 | 10% |
5-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30%Top Rate | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 5.75% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 5.75% | 5 yr | $100,000 | 10% | |
| Axonic Insurance | Waypoint 5 MYGA | 5.65% | 5 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 5 | 5.65% | 5 yr | $2,500 | 0% | |
| Liberty Bankers Life | Heritage Elite 5 | 5.40% | 5 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Premier 5 | 5.35% | 5 yr | $10,000 | Interest Only | |
| Oxford Life Insurance Company | Multi-Select 5 | 5.20% | 5 yr | $20,000 | 10% |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 6 | 5.55%Top Rate | 6 yr | $20,000 | 10% | |
| Oceanview Life and Annuity | Harbourview 6 | 5.50% | 6 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.10% | 6 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 6 | 5.00% | 6 yr | $10,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 4.80% | 6 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 4.70% | 6 yr | $1,000,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 4.30% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 4.30% | 6 yr | $100,000 | 15% |
7-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 5.95% | 7 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 5.95% | 7 yr | $100,000 | 10% | |
| Fidelity Security Life Insurance Company | TaxVantage® Multi-Year Guaranteed Annuity 7 | 5.60% | 7 yr | $2,500 | 0% | |
| Axonic Insurance | Waypoint 7 MYGA | 5.50% | 7 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Elite 7 | 5.45% | 7 yr | $10,000 | 0% | |
| Oxford Life Insurance Company | Multi-Select 7 | 5.45% | 7 yr | $20,000 | 10% | |
| Liberty Bankers Life | Heritage Premier 7 | 5.40% | 7 yr | $10,000 | Interest Only |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 8 | 5.20%Top Rate | 8 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 8 | 5.10% | 8 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.00% | 8 yr | $10,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 4.10% | 8 yr | $100,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Liberty Bankers Life | Heritage Elite 9 | 5.50%Top Rate | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.45% | 9 yr | $10,000 | Interest Only | |
| Liberty Bankers Life | Heritage Premier Plus 9 | 5.35% | 9 yr | $10,000 | Interest Only | |
| Liberty Bankers Life | Heritage Classic 9 | 5.25% | 9 yr | $10,000 | 10% | |
| Securian Financial | SecureOption Choice 9 | 5.20% | 9 yr | $500,000 | 10% | |
| Clear Spring Life | Preserve MYGA 9 | 5.10% | 9 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 9 | 5.10% | 9 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 9 | 5.00% | 9 yr | $10,000 | 10% |
10-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 10 | 5.55%Top Rate | 10 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 10 MYGA | 5.50% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.30% | 10 yr | $100,000 | Interest Only | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.15% | 10 yr | $20,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 10 | 5.10% | 10 yr | $250,000 | 10% | |
| Clear Spring Life | Preserve MYGA 10 | 5.10% | 10 yr | $100,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.10% | 10 yr | $20,000 | 10% | |
| Pacific Guardian Life | Diamond Head 10 | 5.00% | 10 yr | $10,000 | 10% |
Rates shown are for informational purposes only and subject to change without notice. Only carriers rated A− or better by AM Best are included. Products marked SI use simple interest — the effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity broker before purchasing.
Key Takeaways
- Iowa eliminated all state income tax on retirement income for residents age 55 and older starting in 2023 — annuity withdrawals are completely state-tax-free for qualifying residents
- Iowa’s general income tax still applies to wages and other non-retirement income — but pensions, IRAs, 401(k)s, and annuity distributions are fully exempt at 55+
- The Iowa Insurance Division and the guaranty association protect up to $250,000 in annuity present value per person, per insurer
- Iowa law requires a minimum 10-day free-look period for annuity contracts
- Iowa has no state estate tax and no inheritance tax on direct-line heirs
Are Fixed Annuities a Good Investment in Iowa?
Iowa’s 2023 retirement income tax exemption fundamentally changed the calculus for annuity buyers 55 and older. Before the change, Iowa’s graduated income tax meant retirees owed state tax on every dollar of annuity income. Today, Iowa residents 55+ keep 100% of their annuity withdrawals at the state level. Your effective after-tax return on a MYGA in Iowa is simply your contract rate minus your federal tax bracket — nothing else.
Here is a concrete example: Patricia, age 62, lives in Des Moines with $200,000 to invest. She puts it in a 5-year MYGA at 5.10%. Her account grows to approximately $256,000 at maturity — a $56,000 gain. Iowa collects zero state income tax when she withdraws, at any income level. Before 2023, she would have owed Iowa taxes on every dollar of that gain. The exemption is worth approximately $2,800–$4,200 per $56,000 of withdrawal depending on her prior Iowa bracket.
For Iowa residents under 55, Iowa’s graduated income tax still applies to annuity income during working years. But the 55+ exemption is a powerful incentive to defer income inside an annuity and begin withdrawals after crossing that threshold.
Iowa Guaranty Association: How Your Annuity Is Protected
The Iowa Life and Health Insurance Guaranty Association (ILHIGA) protects Iowa policyholders if a licensed insurer becomes insolvent. Coverage is automatic — no enrollment required.
| Coverage Type | Iowa Protection Limit |
|---|---|
| Annuity present value | $250,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Life insurance cash value | $100,000 per person, per insurer |
| Multiple policies at same insurer | Combined subject to limits above |
For annuity portfolios over $250,000, split across two or more A-rated carriers to keep each position within coverage limits.
Iowa Life and Health Insurance Guaranty Association
Website: iowalifega.org
How Iowa Taxes Annuity Income
Iowa residents age 55 and older pay zero Iowa state income tax on all qualifying retirement income — including IRA distributions, pension payments, and annuity withdrawals. Iowa’s graduated income tax (up to 6.00% on wages and other income) does not apply to retirement income for this age group. For residents under 55, annuity income is taxed at Iowa’s graduated rates.
| Taxpayer | Iowa Tax on Annuity Income |
|---|---|
| Age 55 and older | 0% — fully exempt from Iowa income tax |
| Under age 55 (non-retirement income) | Iowa graduated rates up to 6.00% |
| 1035 Exchange | No Iowa tax triggered on the exchange itself |
Iowa has no state estate tax. Iowa does have an inheritance tax for transfers to non-lineal heirs (siblings, nieces, nephews, others), but transfers to a surviving spouse, children, and grandchildren are fully exempt. Annuity death benefits paid to named beneficiaries bypass probate.
Iowa Insurance Division
The Iowa Insurance Division (IID) licenses and regulates all insurance carriers and agents operating in Iowa. Verify both the carrier and your agent before purchasing an annuity.
| Contact | Details |
|---|---|
| Agency | Iowa Insurance Division (IID) |
| Consumer services | 515-654-6600 |
| Toll-free | 1-877-955-1212 |
| Website | iid.iowa.gov |
| License verification | Iowa license lookup |
Tips for Buying an Annuity in Iowa
- If you’re 55 or older, your state tax on annuity income is zero: Iowa’s retirement income exemption is complete — not partial. Every dollar you withdraw from an annuity after 55 is free from Iowa state income tax. Your after-tax MYGA return equals your contract rate minus your federal bracket only.
- Defer until 55 if you’re close: If you’re 53 or 54, a MYGA that matures after your 55th birthday means withdrawals qualify for the full exemption. Strategic deferral to cross the 55 threshold can eliminate Iowa taxes on your entire accumulated gain.
- Iowa’s inheritance tax doesn’t apply to direct heirs: Transfers to a spouse, children, and grandchildren are exempt from Iowa’s inheritance tax. Annuity beneficiary designations bypass probate and transfer cleanly to named beneficiaries.
- Don’t exceed $250,000 per carrier: For portfolios over $250,000, use two or more A-rated carriers to stay within guaranty protection limits.
- Work with an independent broker: Des Moines has one of the most active independent life and annuity broker markets in the Midwest. Independent brokers compare 20+ carriers for your best available rate.
- Use the free-look period: Iowa requires at least 10 days to review and cancel any annuity contract for a full premium refund.
Frequently Asked Questions
Does Iowa tax annuity income?
Not for residents age 55 and older. Iowa eliminated state income tax on all qualifying retirement income — including IRA distributions, pension payments, and annuity withdrawals — for residents 55 and older starting in 2023. For residents under 55, Iowa’s graduated income tax applies at rates up to 6.00%.
What is the best annuity rate in Iowa today?
The best MYGA rates available to Iowa residents from A-rated carriers range from approximately 4.50%–5.50% depending on the term as of early 2026. See the live rate table above for current figures updated daily.
How much does the Iowa Guaranty Association cover?
The Iowa Life and Health Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For investments over $250,000, spread across multiple A-rated carriers.
When did Iowa stop taxing retirement income?
Iowa’s retirement income tax exemption took effect for tax year 2023. Under the law, Iowa residents age 55 and older pay zero Iowa state income tax on all qualifying retirement income, including pensions, IRA distributions, 401(k) withdrawals, and annuity payments.
Does Iowa have an estate or inheritance tax?
Iowa has no state estate tax. Iowa does have an inheritance tax, but transfers to a surviving spouse, children, grandchildren, and parents are fully exempt. Only transfers to more distant heirs (siblings, cousins, non-relatives) face Iowa inheritance tax. Annuity death benefits paid to named beneficiaries bypass probate entirely.
What is the free-look period for annuities in Iowa?
Iowa requires a minimum 10-day free-look period. You can return the contract for a full refund of premium within that window.
Who regulates annuities in Iowa?
The Iowa Insurance Division (IID) licenses and regulates all carriers and agents. Verify licenses at iid.iowa.gov or call 1-877-955-1212.