- State Guaranty Association The Washington Life and Disability Insurance Guaranty Association (contact details are in the national directory at nolhga.com) provides limited protection if an insurance company fails. Washington 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 association. Annuities are not FDIC insured.
- Annuity Tax Treatment Washington has no state income tax, so annuity income, along with Social Security, pension, and IRA distributions, faces no state income tax. The state's capital gains excise tax does not apply to annuity income. Confirm your specific situation with a tax professional.
- State Insurance Department The Washington Office of the Insurance Commissioner regulates annuities sold in Washington. You can verify any insurance professional's license through its online license lookup.
- Free Look Period Washington 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 Washington has adopted the NAIC Best Interest standard for annuity recommendations. Advisors recommending annuities to Washington residents must act in the consumer's best interest.
Retiring in Washington
Washington pairs zero income tax with $500,000 guaranty coverage, one of the strongest combinations in the country for annuity owners.
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.