- State Guaranty Association The Massachusetts Life and Health Insurance Guaranty Association (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 Massachusetts has a flat 5 percent income tax, with an additional surtax on very high incomes, and generally taxes annuity income at the flat rate. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The Massachusetts Division of Insurance regulates annuities sold in Massachusetts. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Massachusetts 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 Massachusetts has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Massachusetts residents must act in the consumer's best interest.
Retiring in Massachusetts
Massachusetts is a high-cost state, but its flat 5 percent rate is simpler than many retirees expect, and world-class healthcare is a genuine retirement asset.
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.