Top MYGA Rates Available in Florida
Florida does not tax annuity income
Florida has no state income tax. Annuity withdrawals, annuitized payments, and lump-sum distributions are not taxed at the state level — a key reason Florida is one of the largest annuity markets in the United States and a frequent destination for retirees relocating before they begin taking income.
Federal income tax still applies. Qualified annuities (IRA or 401(k) money) are fully taxable as ordinary income when distributed; non-qualified annuities are taxed only on the earnings portion under exclusion-ratio rules. Withdrawals before age 59½ may incur a 10% federal early-withdrawal penalty.
Source: Florida Department of Revenue
Florida Annuity Regulations
Free Look Period: 21 days
Florida law requires every annuity contract to include an unconditional refund period of 21 days. During this window you may return the contract for an unconditional refund — for fixed annuities, a refund of premiums paid; for variable or market-value-adjusted products, the contract value plus any fees deducted.
Carriers may offer longer free look periods than the statutory minimum. Always confirm the exact period stated on your contract's cover page.
Source: Fla. Stat. §627.4554 — Suitability in annuity transactions (right to return)
Source: Florida Department of Financial Services — consumer resources
Best Interest Standard: Adopted — effective January 1, 2024
Effective January 1, 2024, Florida amended Fla. Stat. §627.4554 to adopt the NAIC's best-interest standard. An agent recommending an annuity must act in the best interest of the consumer under the circumstances known at the time, without placing the agent's or insurer's financial interest ahead of the consumer's. The statute imposes care, disclosure, conflict-of-interest, and documentation obligations, and requires agents to complete a 4-hour best-interest training course (existing licensees had until July 1, 2024).
Source: Fla. Stat. §627.4554 (2024)
Source: Florida DFS Compliance Corner — January 2024 (statutory changes effective 1/1/2024)
Replacement Rules
Florida's annuity statutes impose specific duties when an agent recommends exchanging or replacing an existing annuity. Before the transaction, the agent must consider — and document — whether the consumer will:
- Incur a new surrender charge period, lose existing benefits (such as death or living benefits), or face increased fees;
- Benefit from product enhancements that genuinely improve their position; and
- Whether the consumer has had another annuity exchange or replacement within the preceding 60 months.
Written replacement disclosures are required, and Florida applies enhanced scrutiny and penalties to improper annuity sales involving consumers age 65 and older.
Source: Fla. Stat. §627.4554 — exchange and replacement obligations
