- State Guaranty Association The Life and Health Insurance Protection Association (Colorado) (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Coverage for annuity benefits is generally $250,000 in present value per contract owner, per insurer. Verify current limits directly with the association. Annuities are not FDIC insured.
- Annuity Tax Treatment Colorado has a flat income tax and offers a retirement income subtraction, including annuity and pension income, of up to $24,000 per year for residents 65 and older. Social Security is fully deductible for residents 65 and older. Confirm your specific situation with a tax professional.
- State Insurance Department The Colorado Division of Insurance regulates annuities sold in Colorado. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Colorado generally provides a free look period of at least 10 days for annuity contracts, often longer for replacement contracts. Your contract states the exact period that applies to you.
- Best Interest Standard Colorado has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Colorado residents must act in the consumer's best interest.
Retiring in Colorado
Colorado combines a flat income tax with a meaningful retirement income subtraction, and its front range and mountain towns keep attracting active retirees.
Learn before you buy
Start with what an annuity actually is, then see how the types differ and which myths to ignore. If someone has already shown you a product, get a free second opinion before you sign.