Multi Year Guaranteed A multi-year guaranteed annuity, or MYGA, is a type of fixed annuity that offers a clear time horizon for the investment and a guaranteed fixed interest rate.

When you invest in a MYGA, you won’t owe taxes on the growth until you start taking payments.

Although we do not have an account type to accommodate MYGA in My Plan, you have the ability to enter a MYGA in My Plan, using this workaround.

STEP 1: Head on over to My Plan > Accounts and Assets
STEP 2: Press on Create an Account + and select Investment/Savings/Checking

STEP 3: Give the account a descriptive name, MYGA 5 years, for example

STEP 4: Select Ordinary Income as your tax treatment

STEP 5: Enter the balance of the MYGA

STEP 6: Set the optimistic and pessimistic rates of return to 0%

STEP 7: Exclude the account from your withdrawal strategies

STEP 8: Enter a lump sum pension for the amount of interest the MYGA will pay at the end of the term. This will ensure that the interest is taxed at your ordinary interest rate.

STEP 9: Direct the lump sum pension distribution to the MYGA account

This should get you as close as possible to your desired outcome. The end result will be the $100,000 (or appropriate balance) plus interest in the MYGA Account in 5 years (or the appropriate term) and will properly tax the interest. Your next step will be including this account in your plans to fund your expenses.