- State Guaranty Association The Life Insurance Company Guaranty Corporation of New York (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. New York provides among the highest coverage in the country, generally $500,000 in present value of annuity benefits per contract owner, per insurer. Verify current limits directly with the corporation. Annuities are not FDIC insured.
- Annuity Tax Treatment New York taxes annuity income as ordinary income at comparatively high rates, but residents 59 and a half and older can exclude up to $20,000 per year of pension and annuity income. Social Security benefits are not taxed. Confirm your specific situation with a tax professional.
- State Insurance Department The New York Department of Financial Services regulates annuities sold in New York. You can verify any insurance professional's license through its online license lookup.
- Free Look Period New York 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 New York applies its own best interest standard under Regulation 187, which predates the NAIC model and covers both annuities and life insurance. Advisors recommending annuities to New York residents must put the consumer's interest first.
Retiring in New York
New York regulates annuities more strictly than any other state, its guaranty coverage is among the strongest, and its $20,000 annual pension and annuity exclusion helps offset high rates.
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.