Virginia is home to one of the largest concentrations of federal retirees in the country, and for good reason. The state offers a $12,000 income deduction for residents 65 and older, no estate tax, and full access to the national MYGA market. Northern Virginia, Richmond, and Virginia Beach all have strong independent annuity broker networks.
Below are today’s best MYGA rates available to Virginia residents from carriers rated A- or better, updated daily.
2-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 2 | 5.15%Top Rate | 2 yr | $70,000 | 10% | |
| Axonic Insurance | Waypoint 2 MYGA | 5.10% | 2 yr | $100,000 | 10% | |
| GBU Life | Asset Guard Select 2 | 5.05% | 2 yr | $25,000 | 10% | |
| Aspida | Synergy Choice 2 | 4.80% | 2 yr | $100,000 | 0% | |
| Mass Mutual | Premier Voyage 2 | 4.70% | 2 yr | $1,000,000 | 10% | |
| Americo | Platinum Assure 2 | 4.15% | 2 yr | $25,000 | 3% |
3-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Ibexis | MYGA Plus 3 (Simple Interest) SI | 6.15%Top Rate | 3 yr | $100,000 | 10% | |
| American National Insurance Company | Palladium MYG MAX 3 | 5.90% | 3 yr | $250,000 | 0% | |
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.85% | 3 yr | $100,000 | 0% | |
| American National Insurance Company | Palladium MYG Annuity 3 | 5.75% | 3 yr | $250,000 | 10% | |
| Athene IA | Athene Max Rate 3 | 5.75% | 3 yr | $100,000 | Interest Only | |
| American National Insurance Company | Palladium Match MYG Annuity 3 | 5.70% | 3 yr | $250,000 | 10% | |
| Aspida | Synergy Choice 3 | 5.70% | 3 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 3 MYGA | 5.65% | 3 yr | $100,000 | 10% |
4-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 4 | 5.75%Top Rate | 4 yr | $20,000 | 10% | |
| Americo | Platinum Assure 4 | 5.70% | 4 yr | $25,000 | 5% | |
| Oceanview Life and Annuity | Harbourview 4 | 5.70% | 4 yr | $70,000 | 10% | |
| Clear Spring Life | Preserve MYGA 4 | 5.60% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 4 | 5.55% | 4 yr | $1,000,000 | 10% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 4 | 5.50% | 4 yr | $100,000 | 10% | |
| Nationwide Life Insurance Company | Secure Growth 4 MVA | 5.50% | 4 yr | $100,000 | 10% | |
| Mass Mutual | Stable Voyage 4 | 5.45% | 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 | 6.65%Top Rate | 5 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 5 (Simple Interest) SI | 6.60% | 5 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 5 | 6.30% | 5 yr | $100,000 | 0% | |
| Axonic Insurance | Waypoint 5 MYGA | 6.10% | 5 yr | $100,000 | 10% | |
| Athene IA | Athene Max Rate 5 | 6.05% | 5 yr | $100,000 | Interest Only | |
| Global Atlantic Financial Group | SecureFore II 5 | 6.00% | 5 yr | $100,000 | 10% | |
| Knighthead Life | Staysail 5 With Liquidity (Simple Interest) SI | 6.00% | 5 yr | $100,000 | 10% | |
| Nationwide Life Insurance Company | Secure Growth 5 MVA | 6.00% | 5 yr | $100,000 | 10% |
6-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oceanview Life and Annuity | Harbourview 6 | 6.10%Top Rate | 6 yr | $70,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 6 | 5.95% | 6 yr | $20,000 | 10% | |
| Americo | Platinum Assure 6 | 5.90% | 6 yr | $25,000 | 5% | |
| Guardian Insurance & Annuity Co. | Guardian Fixed Target Annuity 6 | 5.80% | 6 yr | $100,000 | 10% | |
| Mass Mutual | Premier Voyage 6 | 5.75% | 6 yr | $1,000,000 | 10% | |
| Clear Spring Life | Preserve MYGA 6 | 5.70% | 6 yr | $100,000 | 10% | |
| American General Life Insurance Company | American Pathway VisionMYG 6 | 5.40% | 6 yr | $100,000 | 15% | |
| Corebridge Financial | American Pathway VisionMYG 6 | 5.40% | 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 | 7.10%Top Rate | 7 yr | $100,000 | 0% | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.85% | 7 yr | $100,000 | 10% | |
| Aspida | Synergy Choice 7 | 6.35% | 7 yr | $100,000 | 0% | |
| Athene IA | Athene Max Rate 7 | 6.15% | 7 yr | $100,000 | Interest Only | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 6.05% | 7 yr | $100,000 | 10% | |
| Americo | Platinum Assure 7 | 6.00% | 7 yr | $25,000 | 5% | |
| Global Atlantic Financial Group | SecureFore II 7 | 6.00% | 7 yr | $100,000 | 10% | |
| AuguStar | LunarGuard 7 MVA | 5.95% | 7 yr | $100,000 | 5% |
8-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 8 | 5.90%Top Rate | 8 yr | $20,000 | 10% | |
| Clear Spring Life | Preserve MYGA 8 | 5.70% | 8 yr | $100,000 | 10% | |
| Pacific Guardian Life | Diamond Head 8 | 5.40% | 8 yr | $10,000 | 10% | |
| American National Insurance Company | Palladium MYG Annuity 8 | 5.30% | 8 yr | $250,000 | 10% | |
| Guaranty Income Life | Guaranty Rate Lock 8 | 3.90% | 8 yr | $250,000 | 5% |
9-Year MYGA Rates
| Carrier | Product | AM Best | Rate | Term | Min Premium | Free Withdrawal |
|---|---|---|---|---|---|---|
| Oxford Life Insurance Company | Multi-Select 9 | 5.95%Top Rate | 9 yr | $20,000 | 10% | |
| Capitol Life Insurance Company | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Liberty Bankers Life | Heritage Elite 9 | 5.75% | 9 yr | $10,000 | 0% | |
| Capitol Life Insurance Company | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Clear Spring Life | Preserve MYGA 9 | 5.70% | 9 yr | $100,000 | 10% | |
| Liberty Bankers Life | Heritage Premier 9 | 5.70% | 9 yr | $10,000 | Interest Only | |
| Capitol Life Insurance Company | Heritage Classic 9 | 5.65% | 9 yr | $10,000 | 10% | |
| Liberty Bankers Life | Heritage Classic 9 | 5.65% | 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 | 6.20%Top Rate | 10 yr | $70,000 | 10% | |
| Lincoln Financial | Lincoln MYGuarantee Plus 10 | 6.00% | 10 yr | $100,000 | 10% | |
| Oxford Life Insurance Company | Multi-Select 10 | 5.95% | 10 yr | $20,000 | 10% | |
| Reliance Standard Life | Reliance Guarantee - 10 | 5.90% | 10 yr | $20,000 | 10% | |
| Delaware Life | Pinnacle Plus MYGA 10 | 5.85% | 10 yr | $100,000 | 10% | |
| Royal Neighbors of America | MYGA 10 Year | 5.80% | 10 yr | $100,000 | Interest Only | |
| American General Life Insurance Company | American Pathway VisionMYG 10 | 5.75% | 10 yr | $100,000 | 15% | |
| Assurity Life | SecurePath 10 | 5.75% | 10 yr | $2,000 | 12% |
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
- Virginia residents age 65+ qualify for a $12,000 age deduction from state taxable income, reducing taxes on annuity withdrawals
- Virginia’s top income tax rate is 5.75% on income over $17,000, but the age deduction softens this for most retirees
- The Virginia Life, Accident and Sickness Insurance Guaranty Association protects up to $250,000 per person, per insurer
- Virginia requires a minimum 10-day free-look period for annuity contracts (30 days for buyers 65+)
- Virginia has no estate tax and no inheritance tax, annuity death benefits pass to heirs without state estate taxation
Are Fixed Annuities a Good Investment in Virginia?
Virginia’s combination of no estate tax and a $12,000 age deduction makes it a solid state for retirees building annuity income. While the top 5.75% income tax rate is higher than some states, most retirees drawing $40,000–$80,000 annually from annuities and Social Security will find their effective Virginia tax rate considerably lower once deductions are applied.
Consider James, age 68, a retired federal employee living in Fairfax County. He withdraws $25,000 annually from a non-qualified MYGA, the gain portion is $14,000. Virginia’s $12,000 age deduction reduces his taxable income by $12,000, meaning only $2,000 of that gain is subject to Virginia’s 5.75% rate, a state tax bill of just $115. Without the deduction, he’d owe $805. The deduction makes a real difference.
Virginia also has a large and competitive independent broker market, particularly in Northern Virginia, Richmond, and the Hampton Roads area. Federal employees and military retirees are well-served by brokers experienced with TSP rollovers into annuities.
Virginia Guaranty Association: How Your Annuity Is Protected
The Virginia Life, Accident and Sickness Insurance Guaranty Association provides a safety net if a licensed Virginia insurance carrier becomes insolvent. Like most states, Virginia protects up to $250,000 in annuity present value per person, per insurer.
| Coverage Type | Virginia Protection Limit |
|---|---|
| Annuity present value | $250,000 per person, per insurer |
| Life insurance death benefit | $300,000 per person, per insurer |
| Health insurance benefits | $500,000 per person, per insurer |
| Multiple policies, same insurer | Combined subject to per-insurer limits |
For Virginia investors with more than $250,000, the standard strategy is to split across two or more carriers rated A- or better. Each insurer is protected separately. A $500,000 portfolio split equally between two carriers receives full guaranty coverage on the entire amount.
Virginia Life, Accident and Sickness Insurance Guaranty Association
Website: valifega.org
How Virginia Taxes Annuity Income
Virginia taxes annuity income as ordinary income under a graduated rate structure topping out at 5.75%. The $12,000 age deduction for residents 65 and older is particularly valuable for annuity owners drawing regular income.
| Annuity Type | Virginia Tax Treatment | State Rate |
|---|---|---|
| Non-qualified annuity (after-tax funds) | Only gains taxed; principal excluded via exclusion ratio | 2%–5.75% graduated |
| Qualified annuity (IRA / 401(k) rollover) | 100% of distributions taxable as ordinary income | 2%–5.75% graduated |
| Age deduction (65+) | $12,000 deduction from Virginia taxable income | Reduces effective rate |
| Roth IRA annuity | Qualified distributions tax-free | 0% |
| 1035 Exchange | No Virginia tax triggered on the exchange | N/A |
Virginia’s income tax brackets: 2% on the first $3,000; 3% on $3,001–$5,000; 5% on $5,001–$17,000; 5.75% on income over $17,000. Most retirees with moderate annuity income will find their effective rate closer to 4%–5% after the age deduction and standard deduction are applied. Virginia does not tax Social Security benefits, which further reduces the overall tax burden for most retirees.
Virginia Bureau of Insurance
The Virginia Bureau of Insurance, a division of the State Corporation Commission (SCC), regulates all insurance carriers and agents operating in Virginia. If you need to verify a carrier’s license, check an agent’s credentials, or file a complaint about an annuity, the Bureau of Insurance is your resource.
| Contact | Details |
|---|---|
| Agency | Virginia Bureau of Insurance (State Corporation Commission) |
| Phone | (804) 371-9741 |
| Toll-free | 1-800-552-7945 |
| Website | scc.virginia.gov |
| File a complaint | scc.virginia.gov/insurance-complaints |
Tips for Buying an Annuity in Virginia
- Use the $12,000 age deduction strategically: If you’re 65+, plan withdrawals to maximize the deduction each year. Staggering withdrawals over multiple years can minimize Virginia taxes.
- Federal and military retirees, ask about TSP rollovers: Virginia has many brokers experienced with Thrift Savings Plan rollovers into annuities. This is a specialized area, work with someone who knows the TSP rules.
- Verify the free-look period: Virginia provides a 30-day free-look period for annuity buyers 65 and older. Use the full window to review the contract.
- Confirm the carrier is licensed in Virginia: Check at scc.virginia.gov before submitting any application or premium.
- Keep per-carrier balances under $250,000: Spread larger portfolios across multiple insurers rated A- or better to maximize guaranty association coverage.
Frequently Asked Questions
What is the best annuity rate available in Virginia today?
The best MYGA rates for Virginia residents from carriers rated A- or better currently top out at 7.10%, depending on the term. See the live table above for daily-updated figures from AnnuityRateWatch.
Does Virginia tax annuity income?
Yes. Virginia taxes annuity income at graduated rates from 2% to 5.75%. However, residents age 65 and older receive a $12,000 deduction from Virginia taxable income, which reduces the effective tax rate on annuity withdrawals significantly.
How much does Virginia’s Guaranty Association protect?
The Virginia Life, Accident and Sickness Insurance Guaranty Association protects up to $250,000 in annuity present value per person, per insurance company. For balances over $250,000, spread across multiple carriers rated A- or better.
Is there a free-look period for annuities in Virginia?
Yes. Virginia requires a 10-day free-look period for standard annuity buyers, and a 30-day free-look period for buyers age 65 and older. During this window, you can return the contract for a full refund with no surrender charges.
Who regulates annuities in Virginia?
The Virginia Bureau of Insurance (part of the State Corporation Commission) regulates all insurance carriers and agents in Virginia. Verify licenses and file complaints at scc.virginia.gov or call 1-800-552-7945.
Can Virginia federal employees roll their TSP into an annuity?
Yes. A Thrift Savings Plan (TSP) can be rolled into an IRA, which can then be used to purchase a qualified annuity, all without triggering taxes if done as a direct rollover. Virginia follows federal rollover rules. Work with a broker experienced in TSP rollovers, as there are specific rules around the TSP withdrawal process.
