Yes, deferred income annuities held in tax-advantage retirement accounts (like traditional IRAs or 401(k)s) are subject to RMDs once you reach the applicable RMD age, which is typically 73.
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DEFERRED INCOME ANNUITIES Guaranteed future income with deferred income annuities
Deferred income annuities offer guaranteed payments starting at a future date so you can grow your savings now and enjoy a steady flow of retirement income later. We'll help you choose the right deferred income annuity policy and schedule your future payments.
Why choose a deferred income annuity?
A deferred income annuity turns part of your savings into guaranteed income later in life. You make a lump-sum payment (or series of payments), and receive regular income starting at a future date you choose. Your money grows tax-deferred until then, helping you plan for retirement with confidence.
What do I get with a deferred income annuity?
Deferred income annuities offer guaranteed income in retirement and can be a smart choice if you're close to retirement and want steady, pension-like payments for life.
Income for life
When your annuity starts paying you, you’ll have a guaranteed, reliable source of income for the rest of your life or until the guaranteed period ends1
Flexible schedule
You decide when to start receiving income in the future and how often you’ll receive it
Higher payouts
Rather than dipping into your savings, you can actually receive higher guaranteed income by delaying your start date
What are my deferred income annuities options?
Guaranteed Future Income Annuity²
Lifetime income that won’t fluctuate with the financial markets, plus a variety of payout options
Best for: People who want predictable, guaranteed income for life without market risk.
Future Mutual Income Annuity³
Designed for people who are looking for protected lifetime income with some liquidity (ability to withdraw cash)
Best for: Individual seeking steady income with the potential for growth through dividends.
Clear Income Advantage Fixed Annuity⁵
Designed for people who are looking for protected lifetime income with some liquidity (ability to withdraw cash)
Best for: Those who want guaranteed income but also need flexible access to their money.
Get started with deferred income annuities
A New York Life financial professional can help you understand your options and find the right policy for your needs.
Common questions about deferred income annuities
A deferred income annuity is a type of policy that converts your savings into a future income stream during retirement. Deferred annuities are a good option if you're at least a few years away from retirement. When you're ready, it starts to provide guaranteed income payments, like a pension that supports you for the rest of your life.
A deferred income annuity gives you a lot of flexibility, and your agent will help you make a number of decisions: how much to put into the deferred income annuity and when, how often you'd like to receive guaranteed payouts, and when you'd like your income to start. In some cases, there's also the potential for dividends. Then you'll start receiving regular income payments to support you for the rest of your life. If your needs change at any point, you can make adjustments to your deferred income annuity.
You can start receiving income payments as early as two years after your deferred income annuity policy starts. The longer you can wait, the higher your guaranteed income may be. Connect with an agent for personalized quotes and guidance.
If Yes—but it depends on how you funded the deferred income annuity. Deferred income annuities are a type of tax-deferred annuity, meaning you won't pay taxes on the earnings while your money is growing. Instead, taxes are deferred until you begin receiving income. If you purchase the annuity with after-tax dollars, only the earnings portion of each payment is taxable—the rest is considered a return of your original premium and isn't taxed.
If you use pre-tax dollars (like funds from a traditional IRA or 401(k)), then the entire payment is subject to ordinary income tax. A New York Life agent can give you personalized quotes and answer any other questions you may have.
A deferred income annuity is considered low risk. You’re guaranteed to receive regular payments for life and not lose any of the money you put in.
What if I want a faster payout than deferred income annuities offer?
If you want retirement sooner, immediate income annuities are another option. You can start converting your retirement savings to regular income as soon as next month, instead of having to wait an few years (like with deferred annuities).
Learn more about deferred income annuities
1All guarantees are dependent upon the claims-paying ability of the issuers, New York Life Insurance Company (NYLIC) and New York Life Insurance and Annuity Corporation (NYLIAC) (A Delaware Corporation), a wholly owned subsidiary of NYLIC. All contract and rider guarantees, including options benefits and annuity payout rates, are backed by the claims-paying ability of the respective insurance company.
2New York Life Guaranteed Future Income Annuity is issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Corporation, 51 Madison Avenue, New York, NY 10010. The policy form number for the New York Life Guaranteed Future Income Annuity is ICC11-P100 (it may be 211-P100 and state variations may apply).
3New York Life Future Mutual Income Annuities are issued by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. The policy form number for the New York Life Future Mutual Income Annuity is 215-P200. State variations may apply.
4Dividends are not guaranteed. Dividends, if declared, are payable beginning on the first policy anniversary (i.e., 12 months after issue).
5New York Life Clear Income Advantage Fixed Annuities are issued by New York Life Insurance and Annuity Corporation (NYLIAC), A Delaware Corporation, 51 Madison Avenue, New York, NY 10010. In most jurisdictions, the policy form number for the New York Life Clear Income Advantage–FP Series is ICC22D-P01; in some states it may be NC22D-P01, and state variations may apply. In most jurisdictions, the rider form number for the Guaranteed Lifetime Withdrawal Benefit Rider is ICC22D-R01; in some states it may be NC22D-R01, and state variations may apply.
All withdrawals are subject to regular income taxes and are taxed “gains first” or last in first out. Once your Accumulation Value is reduced to $0, your lifetime income payments are fully taxable. Withdrawals made prior to income starting or withdrawals greater than your Guaranteed Lifetime Withdrawal Amount will reduce your guaranteed income payments. Withdrawals made prior to age 59½ may be subject to a 10% IRS penalty. Surrender charges and Market Value Adjustments (MVA) may also apply.
An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender-charge-free withdrawal amount during the surrender-charge period and will add or deduct an amount from your annuity or from the withdrawal amount you receive based on a formula and the prevailing interest rate environment. Please request a Product Fact Sheet from your financial professional for additional important information.