Fixed Annuities in Colorado (2026)
How guaranteed-rate annuities work for Colorado savers: rates, how the state taxes annuity income, and the protection behind your contract if an insurer fails.
Fixed-annuity rates available in Colorado
As an illustrative snapshot from early 2026, multi-year guaranteed annuity rates around 5.30% have been available to Colorado residents from carriers such as New York Life (financial strength rating A or better). Rates change frequently and vary by term, amount, and carrier.
Compare current annuity rates →How fixed annuities work in Colorado
A fixed annuity is a contract with an insurance company: you deposit a lump sum, the insurer credits a guaranteed interest rate for a set term (commonly 3, 5, or 7 years), and your money grows tax-deferred. Unlike bank CDs, growth isn't taxed each year, only when you withdraw.
State taxes matter at withdrawal. In Colorado: Retirement income exclusion of up to $24,000 for individuals age 65 and older. For the full picture, including the federal rules that apply everywhere, see our guide to annuity taxes in Colorado.
Your protection in Colorado
Fixed annuities are not FDIC-insured; their guarantees rest on the issuing insurer's financial strength. As a backstop, annuities from licensed insurers in Colorado are covered by the Colorado Life and Health Insurance Protection Association up to state coverage limits if an insurer fails, and insurers are licensed and monitored by the Colorado Division of Insurance. Coverage limits vary by state, confirm current limits with the guaranty association before you buy.
Choosing a fixed annuity in Colorado
Compare guaranteed rate, term length, surrender schedule, and the insurer's financial strength rating, not just the headline rate. A licensed Colorado annuity professional can quote multiple carriers and check that a contract fits your timeline and income plan.
Frequently asked questions
Does Colorado tax fixed-annuity interest?
Interest grows tax-deferred inside a fixed annuity no matter where you live — you are taxed when you withdraw. At withdrawal, federal income tax applies to the taxable portion, and state treatment follows Colorado's rules: Retirement income exclusion of up to $24,000 for individuals age 65 and older.
What protects my fixed annuity if the insurer fails in Colorado?
Annuities issued by licensed insurers in Colorado are backed by the Colorado Life and Health Insurance Protection Association up to state coverage limits. Insurers themselves are licensed and monitored by the Colorado Division of Insurance. Coverage limits vary by state; confirm current limits with the association before buying.
How do fixed-annuity rates compare to bank CDs?
Multi-year guaranteed annuities (MYGAs) typically pay more than same-term bank CDs because insurers invest in longer-duration portfolios, and growth is tax-deferred rather than taxed annually. The trade-offs: annuities are not FDIC-insured (they rely on insurer strength plus guaranty-association coverage), and withdrawing early usually triggers surrender charges.
What happens when my guarantee period ends?
At the end of the guarantee period you can usually renew at the insurer's then-current rate, exchange into a new annuity tax-free via a 1035 exchange, annuitize into income, or withdraw. Most contracts include a short window after the term ends to move money without surrender charges.
Who regulates annuity agents in Colorado?
Agents selling annuities in Colorado must hold a state insurance license overseen by the Colorado Division of Insurance. You can verify an agent's license status with the department before working with them.
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This page is general educational information, not financial or tax advice. Rates shown are illustrative, change frequently, and may not be available for your situation. Annuity guarantees rely on the claims-paying ability of the issuing insurer. Consult a licensed professional and the Colorado Division of Insurance before making decisions. Information current as of 2026.