Fixed Index Annuity

What's a fixed index annuity?

A fixed index annuity is a type of deferred annuity. It can help your retirement savings grow based on the performance of a market index, up to a certain limit. Since you're not actually invested in the market, your principal is protected from market downswings.

With a USAA Fixed Indexed Annuity, you'll have protected growth backed by the financial strength of USAA Life Insurance Company.

Read video transcript : What's a fixed index annuity?

How does the USAA Fixed Indexed Annuity work?

The USAA Fixed Indexed Annuity offers reduced risk. It also offers a 100% participation rate, which means you'll get all of the index gains subject to the cap rate. Once you put money into one, here's what you can expect.

Protected Growth

Your savings can grow up to a certain limit based on the performance of the S&P 500® stock market index. If the index goes up, the credited interest rate could be higher than that of a traditional fixed annuity. Because you're not participating in the market, the money in your annuity is protected from losing value.
Tax-deferred Growth

You don't have to pay taxes on the interest your annuity earns until you take money out of it. This can help the money in your annuity grow faster.
Optional Source of Income

Depending on your future needs, you could use all or part of your deferred annuity to generate guaranteed^{See note1} income from an immediate annuity.

Consider our Fixed Index Annuity features.

7-Year Fixed Index Annuity

Current cap rate^{See note2}:

9.00%

Fixed account interest rate^{See note3}:

4.00%

Minimum guaranteed interest rate for 7 years (opens modal)

$100,000

Minimum to open

How to fund an annuity (opens modal)Schedule a call with a USAA representative (opens new window)View surrender charges for 7 years (opens modal)

Rate effective November 26, 2024. Your actual rates will depend on your physical address state. Interest rates are subject to change, but they'll never be less than the guaranteed minimum. The Cap Rate for the initial interest Crediting Period will be the higher of the rate in effect on the day we receive your signed application or the effective date of your contract, as long as we receive your money within 30 days of your signed application. This is known as an interest rate lock.

The minimum guaranteed interest rate is subject to change and may vary by product and state. The minimum guaranteed rate is fixed and will not change after the contract is issued.

Benefits of fixed index annuities

The index performance feature of our annuity may fit into your overall retirement plan. It could help supplement other retirement income like Social Security.

Growth and Protection

Grow your retirement savings based on S&P 500® performance and get protection from a market downside. You can possibly earn more than with a traditional fixed rate annuity.
Tax-Deferred Earnings

Keep more earned interest and grow your money faster by delaying the tax impact.
Locked-In Earnings

Interest is credited to your fixed index annuity at the end of each term. After that, the interest from each term is locked in, protecting it from future market declines.

Talk to a USAA Retirement Income Specialist

We're here to help you find the annuity that best fits your retirement plan.

Our Retirement Income Specialists have the knowledge and insights to help you enjoy your retirement. They don't work on commissions, and they can offer a complimentary review of your retirement outlook.

They'll help educate you about:

Retirement goals.
Income sources.
Expenses and debt.
401(k)s, IRAs and other assets.
Insurance and coverage limits.

You can get ready for your conversation using our retirement planning worksheet (PDF) Opens new window.

To talk to a USAA Retirement Income Specialist, call us

Schedule a call (Opens new window)

Call 800-833-9847 (Opens popup)

For TTY devices, dial 711

View Hours of operation (Opens popup)

Why choose USAA Life Insurance Company for an annuity?

We've been providing financial products and services to our members for more than sixty years. And we're built around the core values of service, loyalty, honesty and integrity. Here's more of what you can expect from us.

Professional guidance

Our Retirement Income Specialists can help you develop a complimentary retirement income review. Their customized planning and distribution strategies can help you retire with confidence.

Financial strength

The USAA Life Insurance Company maintains top-tier grades from all three key rating agencies. That includes the highest possible from A.M. Best and the second-highest possible from both Moody's Investor Service and S&P Global.^{See note4}

Commitment to the military

USAA ranks #1 on the Military Friendly® Company 2024 list.

How to Grow your Retirement Savings Worry-free.

Join us for a short presentation on Dec. 11 at 1 p.m. CT to learn how annuities can keep your retirement savings growing. You'll learn about guaranteed rates, market-based rates, and the power of tax deferred earnings, including Q&A with licensed USAA specialists.

Get help settling an annuity.

Surviving the loss of a loved one involves many challenges and decisions. Our Survivor Relations team is ready to help during this difficult time. We can help beneficiaries file an annuity claim and provide guidance on how to handle an estate.

Learn moreabout USAA Survivor Relations Team

Fixed index annuity FAQ

Are fixed index annuities a good investment?

Are fixed index annuities safe?

Are deferred annuities taxable?

Deferred annuities funded with pretax money could be taxable as ordinary income when you make a withdrawal. This applies when your annuity is funded from sources such as a traditional IRA or pretax 401(k).

But if your deferred annuity is funded from a Roth IRA or Roth 401(k), withdrawals will be tax-free as long as you have had your money in a Roth IRA or Roth 401(k) for at least five years and are age 59½ at the time you make a withdrawal.

Distributions from a deferred annuity could be taxed as ordinary income if the annuity was opened as nonqualified, meaning the funds didn't come from a qualified retirement plan like an IRA or 401(k).

How does a fixed index annuity differ from a fixed rate annuity?

View all annuities FAQ

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What if a fixed index annuity isn't right for you?

If you think this annuity isn't the best fit for your situation, we offer other annuity options.

Deferred Annuity

Our Fixed Guaranteed Growth (FGG) annuity is a deferred annuity that offers protected growth at a guaranteed interest rate for a period you choose.

Minimum to open: $20,000 to $50,000
Term: 3, 5 or 10 years
Can be used to create guaranteed income later

Learn more about this deferred annuity

Immediate Annuity

The USAA Single Premium Immediate Annuity (SPIA) offers a guaranteed stream of income for your lifetime, a set number of years or both.

Minimum to open: $20,000
Term: 10 to 30 years, your lifetime or both
Payouts can start right away

Learn more about this immediate annuity

After the first year, you can take a one-time withdrawal up to 10% of your annuity's value each year without paying a surrender charge. The table below shows the percentage we will charge for any additional withdrawal. The percentage depends on the year contract in which you make the withdrawal.

Year	Rate
1	9.0%
2	8.0%
3	7.0%
4	6.0%
5	5.0%
6	4.0%
7	3.0%
After your 7-year term	0.0%

Minimum Guaranteed Interest Rates

After the first contract year, the fixed account interest rate may change, but it will never be lower than the guaranteed minimum interest rate listed below.

Period	Rate
2 to 14 years	1.75%
15 or more years	2.80%

Interest rates shown are for Texas contracts. Your rate will depend on the state where you live.

Note 1 Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer's claims-paying ability and financial strength.

Note 2 For amounts allocated to the Indexed Account, the Cap Rate is the maximum Indexed Interest Rate for the Interest Crediting Period and is declared annually at our sole discretion.

Note 3 For amounts allocated to the Fixed Account, the Fixed Account Interest Rate is guaranteed for the Interest Crediting Period and is declared annually at our sole discretion.

Note 4 As of February 1, 2024, A.M. Best: A++, Superior (highest of 16 possible ratings); Moody's Investors Service: Aa1, Excellent (second highest of 21 possible ratings); S&P Global Ratings: AA+, Very Strong (second highest of 21 possible ratings). Ratings are subject to change. Ratings apply to USAA Life Insurance Company and USAA Life Insurance Company of New York not to the products or services they provide. Company ratings represent an opinion of financial strength and the company's ability to meet ongoing obligations to policyholders. Ratings refer to the claims-paying ability of the insurance company and do not reflect the safety or performance of any product. The rating agencies listed are independent of each other and use proprietary evaluation criteria and ratings scales. For the latest Financial Strength Ratings, visit www.ambest.com, www.moodys.com and www.spglobal.com/ratings.

Fixed Indexed Annuity (FIA) material is not intended for residents of Idaho, North Dakota or Oregon.

Fixed Guaranteed Growth earns interest at the rate in effect at the time of purchase. Rate guaranteed for the period selected. Afterwards, interest rates may change monthly, but not below the minimum guaranteed interest rate.

Money not previously taxed is taxed as income when paid. Withdrawals before age 59½ may be subject to a 10% federal tax penalty.

An annuity is a long-term insurance contract issued by an insurance company designed to provide a retirement income stream for life. Once the contract principal is converted into an income stream, you will no longer have access to your principal as a lump sum. Terms, conditions, limitations and surrender charges may apply.

Fixed Indexed Annuity (FIA): Forms ICC2399755 06-23, ASP504431ST 07-23, ASP504389FL 07-23, ASP504351CA 07-23

Fixed Guaranteed Growth (FGG): Forms ICC2398732 06-23, ASP98784CA 10-18, ASP98782ST 10-18, ASP98783FL 06-23, ASP98785ND 10-18, ASP98863SD 10-18, NSP98868NY 10-18

Guaranteed Retirement Income Plan (GRIP): Forms ASI94832ST 10-11, ASI97207AK 10-11, ASI94878AR 10-11, ASI97208AZ 10-11, ASI94875CA 10-11, ASI97165CT 10-11, ASI97123IA 10-11, ASI97032ID 10-11, ASI94876IL 10-11, ASI97195KS 10-11, ASI97170MA 10-11, ASI94940MD 10-11, ASI94879MN 10-11, ASI94921MT 10-11, ASI94920NJ 10-11, ASI97268OH 10-11, ASI94877OK 10-11, ASI94941OR 10-11, ASI94922PA 10-11, ASI94833TX 10-11, ASI97124VA 10-11, ASI94874OS 10-11, NSI94897NY 10-11, NSI97130NY 10-11

Prior to requesting an IRA rollover from a qualified retirement plan (Plan) account or Thrift Savings Plan (TSP) account, consider whether such a rollover is appropriate for you. A TSP is a retirement plan for military or civilian employees of the U.S. government. Although IRA rollovers may have certain advantages, Plan/TSP accounts have advantages you should consider before proceeding which may include, but are not limited to, low administrative and investment expenses and, if you separate from service at age 55 or older, you have penalty-free access to your Plan/TSP account funds. Additionally, you may want to consider maintaining at least a minimal Plan/TSP account balance because, in the event you want to transfer or rollover qualified assets to your Plan/TSP account in the future, to the extent it is allowed by your Plan/ TSP, you may be required to have an open Plan/TSP account with a balance when your request is received by that Plan/TSP. You should consult your tax advisor regarding your specific situation to determine whether a Plan/TSP account rollover to an IRA would be suitable for you.

INDEX DISCLOSURE
The "S&P 500®" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). It is not possible to invest directly in an index. USAA Fixed Indexed Annuity are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the USAA Fixed Indexed Annuity or any member of the public regarding the advisability of investing in securities generally or in USAA Fixed Indexed Annuity particularly or the ability of the S&P 500® to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices' only relationship to USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK with respect to the S&P 500® is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500® is determined, composed and calculated by S&P Dow Jones Indices without regard to USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK or the USAA Fixed Indexed Annuity. S&P Dow Jones Indices has no obligation to take the needs of USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK into consideration in determining, composing or calculating the S&P 500®. S&P Dow Jones Indices is not responsible for and have not participated in the determination of the prices, and amount of USAA Fixed Indexed Annuity or the timing of the issuance or sale of USAA Fixed Indexed Annuity or in the determination or calculation of the equation by which USAA Fixed Indexed Annuity is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of USAA Fixed Indexed Annuity. There is no assurance that investment products based on the S&P 500® will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500® OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK, OWNERS OF THE USAA Fixed Indexed Annuity, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500® OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND USAA LIFE INSURANCE COMPANY AND USAA LIFE INSURANCE COMPANY OF NEW YORK, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.

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Fixed Index Annuity

Grow your retirement savings.

What's a fixed index annuity?

How does the USAA Fixed Indexed Annuity work?

Protected Growth

Tax-deferred Growth

Optional Source of Income

Consider our Fixed Index Annuity features.

7-Year Fixed Index Annuity

Benefits of fixed index annuities

Growth and Protection

Tax-Deferred Earnings

Locked-In Earnings