- State Guaranty Association The Maryland Life and Health Insurance Guaranty Corporation (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 Maryland taxes annuity income as ordinary income, with a pension exclusion for residents 65 and older that generally does not extend to IRA distributions. Social Security benefits are not taxed, though county-level income taxes apply on top of the state rate. Confirm your specific situation with a tax professional.
- State Insurance Department The Maryland Insurance Administration regulates annuities sold in Maryland. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Maryland 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 Maryland has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Maryland residents must act in the consumer's best interest.
Retiring in Maryland
Maryland retirees should plan around its county income taxes and the limits of its pension exclusion, which makes tax-aware annuity planning especially relevant here.
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.